Kohl’s Corporation (NYSE:KSS) saw its stock rise 3.7% in early trading Thursday after delivering first-quarter results that surpassed expectations, even as overall sales declined and forward guidance fell short of Wall Street projections.
For the quarter ending May 3, 2025, the retailer reported a net loss of $0.13 per share—narrower than analysts’ forecast of a $0.47 loss. Revenue totaled $3 billion, edging past the consensus estimate of $2.99 billion, though marking a 4.1% decrease compared to the same quarter last year. Comparable sales dropped 3.9% year-over-year.
Despite the sales dip, the company showed gains in profitability metrics. Gross margin improved by 37 basis points to 39.9%, and operating income climbed to $60 million, up from $43 million in Q1 of the prior year.
Interim CEO Michael Bender noted the company’s progress amid challenging retail conditions: “Our first quarter performance was ahead of our expectations and the actions we are taking are starting to make progress with early signs of a positive impact.”
However, the company’s full-year outlook failed to impress investors. Kohl’s reaffirmed its fiscal 2025 EPS guidance in the range of $0.10 to $0.60, falling below the average analyst estimate of $0.67. The company also maintained its projection for a 5% to 7% drop in net sales and a 4% to 6% decline in comparable sales for the year.
In a shareholder update, Kohl’s declared a quarterly dividend of $0.125 per share, scheduled for payment on June 25, 2025.
While the first-quarter performance helped buoy investor sentiment in the short term, Kohl’s conservative guidance indicates continued headwinds for the department store chain as it works to stabilize operations and drive long-term growth.