Kohl’s (KSS) stock rallied on Wednesday after the retailer released its earnings report for the second quarter of 2025. This started with adjusted earnings per share of 56 cents, which was well above Wall Street’s estimate of 30 cents, even though it was down 5.08% year-over-year from 59 cents per share.
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Revenue reported by Kohl’s in Q2 2025 was $3.35 billion, another beat next to analysts’ estimate of $3.32 billion. However, the company’s revenue dropped 5.1% year-over-year from $3.53 billion. A contributing factor to this was a 4.2% drop in comparable sales compared to Q2 2024. Despite the drop, interim company CEO Michael Bender highlighted “sales performance that came in ahead of our expectations.”
Kohl’s stock was up 23.47% on Wednesday, extending a 17.88% year-to-date rally. Traders will note that the stock was still down 33.64% over the past 12 months. The company’s 2025 performance comes alongside changes at the retailer and a “challenging economic backdrop.”
Kohl’s 2025 Guidance
Kohl’s provided investors with a guidance update for the full year of 2025 in its latest earnings report. The company now expects adjusted EPS to range from 50 cents to 80 cents. For comparison, Wall Street expects the company to report adjusted EPS of 63 cents in 2025, just below the midpoint guidance of 65 cents.
Other guidance updates include revenue falling 5% to 6% year-over-year, alongside a 4% to 5% decrease in comparable sales. The company also expects adjusted operating margin to range from 2.5% to 2.7% and capital expenditures of roughly $400 million.
Is Kohl’s Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Kohl’s is Moderate Sell, based on six Hold and six Sell ratings over the past three months. With that comes an average KSS stock price target of $7.27, representing a potential 54.16% downside for the shares. These ratings and price targets will likely change after today’s earnings report.
