What Happened?
Shares of department store chain Kohl’s (NYSE: KSS) jumped 8.1% in the afternoon session after the company appointed Michael Bender as its permanent chief executive and raised its full-year financial forecast after reporting better-than-expected third-quarter results.
Investors cheered the official appointment of Bender, who had served as interim CEO since May 2025, signaling a more concrete path forward for the retailer. While third-quarter net sales saw a slight decline of 2.8%, Kohl's delivered a stronger-than-expected performance with improved gross margins and higher-than-anticipated earnings per share. The positive results were driven by an increase in store traffic, particularly during the back-to-school season.
Following the strong quarter, the company raised its full-year 2025 outlook, now forecasting a smaller net sales decrease than previously guided. The positive developments led analysts at firms like Baird and Evercore ISI Group to raise their price targets on the stock, reflecting increased confidence in the company's direction under its new leadership.
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What Is The Market Telling Us
Kohl’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 6.1% on the news that comments from a key Federal Reserve official boosted investor optimism for a potential interest rate cut.
New York Federal Reserve President John Williams, a voting member of the rate-setting committee, suggested he sees room for "further policy easing," which sent a strong signal to the markets. Following his remarks, the probability of a December rate cut, as measured by the CME FedWatch Tool, surged from 39% to 71%. Lower interest rates can stimulate the economy by making borrowing cheaper for both consumers and businesses, which often translates to increased consumer spending. This prospect is outweighing recent reports of lower consumer confidence, as investors bet that a more accommodative Fed policy will support retailers through the holiday season.
Kohl's is up 71.5% since the beginning of the year, and at $24.06 per share, has set a new 52-week high. Investors who bought $1,000 worth of Kohl’s shares 5 years ago would now be looking at an investment worth $718.21.
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