Kohl's scores upgrade at Gordon Hasett on improving holiday outlook (KSS:NYSE)

Kohl's Corporation (KSS) shares rose 12% to $24.78 on Thursday, nearing its 52-week high of $25.22. Analyst Chuck Grom upgraded the stock, citing optimism for the holiday season.

Kohl's shares rose 12% after Gordon Haskett upgraded the stock to Buy with a $27 price target, citing signs of a turnaround. The target is above Wall Street's average of $19. Kohl's Q3 report will show if October's traffic increase translated to sales. The stock trades at 15x forward earnings, above its 5-year average.

Kohl's (KSS) +8%, Macy's (M) +3% as investors rotate into undervalued department stores, while Abercrombie & Fitch (ANF) -2%. Kohl's reported Q2 EPS beat but declining sales; raised FY guidance. SPDR S&P Retail ETF (XRT) +0.8%.

Kohl's (KSS) reported Q2 2027 net sales of $3.3B, down 0.9% YoY. Gross margin rose to 43.0% due to $100M in tariff refunds. Adjusted EPS guidance raised to $1.80-$2.40. Inventory decreased 3%, while digital sales grew 2.8%. Marketplace sales surged 88%, but Sephora at Kohl's sales fell 4%. The company plans to repurchase $100M in stock and reduce debt.

Kohl's (KSS) reported mixed Q2 results: adjusted EPS rose to $1.28 (from $0.56 YoY), but GAAP EPS fell to $1.28 (from $1.35). Sales declined 0.9%, marking 18 straight quarters of negative comparable sales. The company raised its non-GAAP EPS guidance to $1.80-$2.40, citing $150M in tariff refunds, which drove 98% of gross margin expansion. Management highlighted improved digital sales and inventory management but noted ongoing financial pressures for low- and middle-income customers.

Kohl's reported Q2 earnings, highlighting 3% growth in proprietary-brand sales and 1% growth in home sales. Inventory declined 3%, while receipts increased 7%. Marketplace grew 88% YoY. The company raised its outlook, expecting comparable sales to decline 1.5% to flat and adjusted EPS of $1.80 to $2.40. Kohl's ended the quarter with $821M in cash and resumed share repurchases.