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Yahoo
3 days ago
- Business
- Yahoo
Is Kohl's Stock a Buy, Sell, or Hold in July 2025?
Kohl's (KSS) is in the thick of a strategic identity crisis, and its recent stock surge only throws the tension into sharper relief. Over the past three years, shares of the department store chain have dropped 56%. Zoom into the last 52 weeks, and it's a 36% downslide. The company's market share has steadily slipped under pressure from both brick-and-mortar rivals and e-commerce juggernauts. Internal dysfunction has only deepened the trouble. In early May, Kohl's abruptly ousted CEO Ashley Buchanan following an internal investigation, raising serious questions about leadership stability. More News from Barchart Warren Buffett Warns Inflation Turns Business Into 'The Upside-Down World of Alice in Wonderland' But Weeds Out 'Bad Businesses' Why GOOGL Stock May Be the Market's Next Big Winner Alphabet Posts Lower Free Cash Flow and FCF Margins - Is GOOGL Stock Overvalued? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Meanwhile, President Donald Trump's tariffs on imports have forced the company to overhaul its supply chain and rethink inventory management just to stay operationally afloat. Then came July 22. In an almost surreal twist, KSS shares skyrocketed nearly 38% on no formal news, no bullish analyst calls, no revised guidance — nothing at all except pure retail frenzy. Trading volumes surged 17 times above average, mirroring the chaotic price moves of past meme stock episodes. The fundamentals did not change overnight. But the sentiment did. And that says a lot about the environment Kohl's now operates in. About Kohl's Stock Based in Menomonee Falls, Wisconsin, Kohl's operates nearly 1,100 retail stores across the United States and manages a nationwide e-commerce platform through its website. With a market capitalization of $1.43 billion, the company offers a broad product range spanning apparel, home goods, footwear, accessories, and beauty. Its proprietary portfolio includes Apt. 9, Croft & Barrow, Sonoma Goods for Life, and Tek Gear, among others, alongside exclusive brand partnerships such as LC Lauren Conrad and Simply Vera Vera Wang. Despite this breadth, KSS stock has been under sustained pressure until a recent surge reversed its course. Over the past month, KSS has rallied 58%, with a 33% gain occurring in just the last five trading days. The speed and scale of the move suggest speculative momentum, not fundamental recovery. KSS stock now trades at 37 times forward earnings, a valuation significantly above its five-year average and well beyond sector norms. For a retailer facing declining sales and a dividend cut to $0.125 per share, that multiple appears disconnected from its underlying financial health. Kohl's Surpasses Q1 Earnings On May 29, Kohl's unveiled its fiscal first-quarter 2025 results, numbers that, while still reflecting a business under strain, managed to beat the Street's muted expectations. Total revenue for the quarter stood at $3.23 billion, down 4.4% year-over-year (YOY) yet slightly ahead of analyst projections of $3.18 billion. Comparable sales slipped 3.9%, weighed down by continued weakness in discretionary categories and lackluster digital traffic. Other revenues declined 9.8% to $184 million. Even so, Kohl's delivered an operating income of $60 million, up 39% from the same period last year. Operating margin improved by 58 basis points to 1.9%, offering a glimpse of tighter cost controls despite sales pressure. Net loss narrowed 44% YOY to $15 million. EPS surprised to the upside, rising 45.8% from the year-ago value to a $0.13 loss versus the consensus estimate of a $0.22 loss. The unexpected beat helped soothe market nerves, although only briefly. As of quarter-end, Kohl's held $153 million in cash and cash equivalents, and total shareholders' equity stood at $3.8 billion. Net cash used in operations reached $92 million, mostly due to seasonal inventory buildup. Looking ahead, Kohl's is bracing for more turbulence. Full-year net sales are expected to decline between 5% and 7%, while comparable sales are projected to fall 4% to 6%. Operating margin is forecast to range between 2.2% and 2.6%, with management guiding for full-year EPS between $0.10 and $0.60. Analyst sentiment mirrors that caution. Q2 EPS is projected to decline 44% YOY to $0.33. For the full fiscal year, the bottom line is expected to plunge 75% to $0.37. Even in fiscal 2026, the Street sees little recovery, forecasting another 8% drop in EPS to $0.34. What Do Analysts Expect for Kohl's Stock? The recent rally in Kohl's stock may have turned heads on trading desks, but Wall Street remains firmly unconvinced. The Street-wide consensus is a 'Moderate Sell,' shaped by structural concerns that continue to cloud the company's trajectory. Out of 12 analysts covering KSS stock, six issue a 'Hold" rating, one suggests a 'Moderate Sell,' and five recommend a 'Strong Sell" rating. Goldman Sachs recently raised its price target from $5 to $7 but kept its 'Sell' rating unchanged. The average price target stands at $7.35. That's well below where KSS stock currently trades. Even the Street-high target, set at $11, doesn't reflect the levels the stock has touched during its meme-fueled spike. It might be safe to say that Kohl's is leaning more toward uncertainty than a true rebound. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Bloomberg
23-07-2025
- Business
- Bloomberg
Temenos Soars as Software Spending by Banks Drives Sales Rebound
Temenos AG shares surged the most since 2008, as the Swiss company sold more of its banking software, with financial institutions stepping up investments. Shares of Temenos rose as much as 25% in Zurich trading after it posted second-quarter revenue above analysts expectations and increased the full-year earnings guidance.
Bloomberg
26-06-2025
- Business
- Bloomberg
What We Know About a Hong Kong TCM Stock That Spiked 82,000%
In this week's Hong Kong Edition, we break down what we know about a TCM company and its dizzying stock surge, take a look at the HKMA's dollar defense and check in with Bloomberg's Mishal Husain. We also review a buzzy new Thai restaurant by the team behind Trattoria Felino. To subscribe to this weekly newsletter for free, click here.
