Track market-moving stories before they get noisy

Key Takeaways Kohl's juniors business grew 10% in Q1, led by strength from proprietary brand So.Proprietary brands posted a 6% comparable sales increase, supported by "By Kohl's" marketing.Kohl's plans to expand So. into more dress and casual categories through its office edit collection. Kohl's Corporation (KSS - Free Report) has been working to strengthen its merchandising strategy by refining assortments and placing a greater emphasis on proprietary brands. Early signs suggest those efforts are gaining traction in the juniors category, where the So. brand emerged as a standout performer during the first quarter of fiscal 2026.

The juniors business grew 10% in the quarter, led by strength from So. The performance contributed to flat to slightly positive comparable sales across the women's, kids', home and accessories businesses, making juniors one of the clearest areas of progress within the company's merchandising initiatives.

The momentum also aligns with Kohl's broader focus on proprietary brands, which delivered a 6% comparable sales increase during the quarter. The company continues to position these brands around quality products at affordable opening price points while supporting them through enhanced in-store presentation and its "By Kohl's" marketing campaign. Building on So.'s performance, Kohl's plans to expand the brand into additional dress and casual categories through its office edit collection.

The importance of So.'s performance is underscored by the broader operating backdrop. Company-wide comparable sales declined 1.1% in the quarter, indicating that the strength in juniors stood out against an overall business that remains under pressure.

While one quarter does not establish a long-term trend, the results suggest that Kohl's merchandising strategy is producing measurable gains in a category where it has invested in its proprietary offering. If the company can sustain the momentum in So. and successfully broaden the brand's assortment, the juniors business has the potential to become a more meaningful contributor to growth within the women's apparel portfolio.

How Walmart and Target CompareWalmart Inc. (WMT - Free Report) is seeing apparel momentum within a broader general merchandise recovery. In the first quarter of fiscal 2027, the company reported 4.1% comparable sales growth at Walmart U.S., supported by a 3% increase in transactions. WMT also noted that fashion stood out, delivering the category’s strongest share growth in five years. Walmart’s apparel progress is being driven by broader assortment improvements, expanded third-party offerings, marketplace growth and value positioning.

Target Corporation (TGT - Free Report) also delivered broad-based merchandise improvement. The company reported 6.7% net sales growth and 5.6% comparable sales growth in the first quarter of fiscal 2026, led by a 4.4% increase in traffic. Sales at TGT grew across all six core merchandise categories, while apparel and accessories sales rose to $3.85 billion from $3.71 billion. Target’s apparel growth reflects broader style, category and traffic-led initiatives.

KSS Stock Price Performance, Valuation & EstimatesShares of Kohl’s have surged 101.4% over the past year compared with the industry’s growth of 60.9%.

KSS Price Performance Versus Industry
Image Source: Zacks Investment Research

From a valuation standpoint, KSS trades at a forward price-to-earnings ratio of 13.61, lower than the industry’s average of 14.16.

KSS’ Valuation Compared to Industry
Image Source: Zacks Investment Research

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Kohl's was once a retail darling, carving out market share as a department store catering to the middle-income American consumer with coupons and deals that drove loyalty.

But over the past five years, Kohl's stock has lost nearly 70% of its value, plummeting as the retailer reported weak sales.

As department stores struggle to stay relevant and middle-income consumers face budget pressure, Kohl's is now trying to reinvigorate sales by leaning back into its core value proposition and investing in the store experience to ensure customers find what they need and keep coming back for more. Though Wall Street analysts believe the retailer has more work to do, investors have started to take notice: Kohl's shares have climbed more than 130% in the past year.

"For us, it's really about making sure that we are picking a lane," CEO Michael Bender told CNBC. "Sitting in the middle of the retail landscape like we do, selling the products like we do, that are admittedly more discretionary than others, means that you have to pick a lane and decide who you're serving, and that you understand that customer really, really well."

The company, which went public in 1992, saw its peak in the early 2000s as department stores gained traction around the U.S. Kohl's was known for its value, proprietary brands, coupons and Kohl's cash rewards, enjoying success along with other department store chains like Macy's and Bloomingdale's.

At its height, Kohl's commanded major market share, with its stock reaching an all-time high of $82 per share in late 2018 and the company reporting revenue of $20.23 billion for the fiscal year ended February 2019.

Kohl's 5 year chart

But soon after, the retailer began to lose traction. While department stores have broadly struggled during that time, Kohl's also faced specific issues that contributed to revenue declines.

"As a department store, they've kind of been struggling for a number of years," Chuck Grom, an analyst at Gordon Haskett, told CNBC.

Now, the company is working to stabilize its business, return to growth and win back a customer base that Bender said Kohl's never completely lost.

Losing its coreThrough changing its assortment, limiting coupon usage and leaning into off-price retail instead of proprietary brands, Kohl's "alienated" its core customers, forcing them to go elsewhere, Grom said.

Grom, who has been covering Kohl's for years, said the retailer went wrong when it leaned into being an off-price retailer.

"I think companies need to realize who their customer bases are and not try to become somebody they're not," he said. "I think too often retailers want to become what somebody else is, and that often can backfire on you."

It's a move that Bender said set Kohl's down the wrong path, leading to years of stagnant sales, declining foot traffic and "drifting" business strategies. The company saw rapid executive turnover and changes to its credit card and promotional offerings, which also came as it dealt with increased competition.

"We made some decisions where we took away categories, for example, petites and jewelry, we've spoken about that in previous earnings calls and other public discussions, those are categories, as an example, that are not substitutable," Bender said. "We stopped listening to the customer."

Kohl's paid the price. Wall Street lost confidence in the retailer, which posted quarter after quarter of slumping sales. At the same time, competitors like Walmart and T.J. Maxx were snatching up market share left behind by Kohl's, and online retailers such as Amazon were growing.

Winning over cost-conscious consumers hit by elevated inflation in recent years also became more difficult as more retailers put a premium on value.

"There always is this concern that can department stores actually grow for any meaningful period of time? There's lots of competition in terms of off-price specialty brands going direct-to-consumer," said Blake Anderson, an analyst covering Kohl's at Jefferies. "The space has really evolved over time, and I think the way that Kohl's has competed has been significantly tied to value, and so winning that customer based on value is becoming very difficult."

Sonia Lapinsky, managing director of retail at consulting firm AlixPartners, said a pressured consumer coupled with the fall of the traditional department store model meant the broader economy wasn't on Kohl's side, either.

"They're looking for options that are giving them their best bang for their buck," she said. "They want value, they want brands, they want the cheapest price they can get it. And there's a lot of compelling propositions out there from these other retailers."

Lapinsky added that priorities at Kohl's changed multiple times after the company's peak, which led in part to its decline.

"Over the years, we've seen a lot of shifting strategies at Kohl's, specifically whether they're getting into athletic and athleisure, or they're doubling down on fashion, or now they're growing private label, and it's a constant kind of shift of what the customer can expect when they walk into the store," Lapinsky told CNBC. "I think that's caused some confusion."

Turning the pageSince Bender took over as CEO in late 2025, he said he's been focused on returning to what always worked for Kohl's: proprietary brands, value, coupons and assurance customers will reliably find the products they want at the right prices.

"In those periods of time, Kohl's was known for taking care of families and making sure that there was assurance that what they were looking for, added value, was going to be available to them," Bender said. "Some of the restoration of that theme that made Kohl's great back then, we think is still relevant today. Customers want convenience."

In its most recent earnings report last month, Kohl's posted its best comparable sales growth in four years, even as it saw revenue decline. The retailer reported revenue of $3 billion, topping Wall Street estimates, and projected full-year net sales and comparable sales to be in a range of down 2% to flat.

At the time, Bender said the quarter marked Kohl's "knocking on the door of growth." The stock spiked 20% following the report.

Grom, the Gordon Haskett analyst, said he believes if Kohl's hadn't returned to its core identity, it would have been "problematic" for the retailer.

"I think their strategy actually makes a lot of sense right now," Grom said. "I think getting back to who they are is going to be important for their success."

Kohl's, which has traditionally catered to older shoppers, has also been trying to capture younger consumers, especially through its Sephora shop-in-shops, designed to draw Generation Z into the store.

Though the Sephora shops struggled slightly in the retailer's most recent quarter — with Bender saying on a call with analysts that the business "underperformed" and declined by a low-single digit percentage — it's historically delivered billions in sales and growing momentum.

"What's been a really interesting development for them is a creative use of their square feet and a way to try to drive not only sales, but new and younger customers," Anderson, the Jefferies analyst, said. "There's often some pushback on department stores, that they were established during a different generation and some of the customers do skew older, so ensuring they maintain relevancy for younger consumers is important."

Bender said the younger generation is "who we can grow with in the future," as Kohl's works to convert that customer to buy deeper in the store after coming in for Sephora.

Despite Kohl's progress, Wall Street may not be convinced yet that the company is making its return to being a household name.

In a June note, TD Cowen analysts wrote that they believe the company is "making the right strategic decisions" but rated the stock at hold due to underperformance in the apparel and footwear businesses.

"Kohl's remains a 'show-me' story, but results appear better than feared with [comparable sales]," the analysts wrote after the most recent earnings report. "We continue to view simplified promotions, rebalanced inventory and leveraging success in juniors as keys to the turnaround. On first look, progress in product and inventory is encouraging, though pressure on the core credit consumer and 'other revenue' remains a key question."

Lapinsky said because of its reputation for deals and promotions, Kohl's has to offer a strong value proposition in addition to a worthwhile in-store experience, which sets it apart from other retailers.

"They have to have a compelling product offering, they have to have the right prices, they have to have the product that consumers want to go into the store and to know that they're getting the best deal — that's really what the consumer is looking for, and that's where they've gone other places for," she said.

Lapinsky added that while Kohl's is clearly trying to improve its balance sheet and bottom line, the market will have to wait and see how it fares against rising competition as it tries to win back customers.

Still, Bender said while the signs toward recovery are encouraging, it's only the first step in a longer road into the "neighborhood" of growth.

"We have not arrived yet," Bender said. "I don't want anyone to feel like we planted that flag and said, 'We're done.' We're still in the early innings, quite honestly, but we are moving in a direction that is much more positive and aligned with a lot more clarity about the direction that we want to take the company."

Key Takeaways Kohl's proprietary brands posted a 6% comparable sales increase in the first quarter of fiscal 2026. Kohl's gross margin expanded 4 basis points to 39.9%, helped by higher proprietary brand penetration. FLX, Tek Gear and So showed strength, with Juniors up 10% and FLX expanding to Kids by June. Kohl’s Corporation (KSS - Free Report) is sharpening its focus on proprietary brands as a core element of its value proposition, with the category supporting merchandise margin in the first quarter of fiscal 2026.

Proprietary brands delivered a 6% comparable sales increase in the quarter, supported by customer demand for value-oriented offerings across categories. Kohl’s positions these brands as quality products offered at affordable opening price points, making them an important part of its merchandise mix.

The strength was visible across several businesses. Women’s, Kids, Home and Accessories posted flat to slightly positive comparable sales trends, while key proprietary labels such as FLX and Tek Gear showed strength across categories. Juniors was a standout, rising 10%, led by the So brand. Kohl’s is also expanding its proprietary brand presence, including the rollout of FLX to Kids in all stores by June.

The higher contribution from these brands showed up in profitability metrics. Gross margin expanded 4 basis points year over year to 39.9% in the first quarter, driven by higher proprietary brand penetration. However, the benefit was largely offset by increased shipping costs tied to higher digital penetration.

The key takeaway is that proprietary brands are giving Kohl’s a clearer margin-supporting lever while reinforcing its value and quality positioning. The first-quarter gain was limited by shipping pressure, but the 6% comparable sales increase shows that these brands are gaining traction where Kohl’s is leaning hardest.

How Are Target and Walmart Driving Margin Expansion?Target Corporation (TGT) is benefiting from a favorable sales and revenue mix. In first-quarter 2026, TGT’s gross margin rate expanded 80 basis points year over year to 29%, driven by supply-chain productivity improvements, growth in higher-margin revenue streams such as Roundel and Target Plus, and lower markdown rates, partly offset by higher product costs.

Walmart Inc. (WMT) is pursuing margin expansion through business and merchandise mix improvements. WMT’s gross profit rate rose 6 basis points to 24.3% in first-quarter fiscal 2027, led by Walmart U.S. Within Walmart U.S., the gross profit increased 29 basis points, supported by improved business mix and merchandise mix, partly offset by higher fuel costs. Walmart also continues to scale higher-margin areas such as advertising, marketplace and membership.

KSS Stock Price Performance, Valuation & EstimatesShares of Kohl’s have surged 114.1% over the past year compared with the industry’s growth of 69%.

KSS Price Performance Versus Industry
Image Source: Zacks Investment Research

From a valuation standpoint, KSS trades at a forward price-to-earnings ratio of 13, lower than the industry’s average of 13.32.

KSS’ Valuation Compared to Industry
Image Source: Zacks Investment Research

Elliott Rodgers will assume the role on Sept. 9, taking on responsibility for Kohl's enterprise operations including its stores, global supply chain and distribution centers, procurement and loss prevention, the retailer said.

Kohl's Corporation (NYSE:KSS) reported first quarter 2026 results that showed a smaller-than-expected loss and better-than-anticipated revenue and sales trends, sending its shares up about 17% on Thursday.

For the quarter ended May 2, 2026, Kohl’s posted a diluted loss of $0.13 per share, beating Wall Street expectations for a loss of $0.21 per share.

Revenue totaled $3 billion, slightly ahead of estimates of $2.99 billion.

Net sales declined 1.7% year-over-year, while comparable sales fell 1.1%, a smaller drop than the 1.7% decline analysts had forecast.

Kohl’s CEO Michael Bender said the company’s “key initiatives continue to drive progressive improvements to the business,” highlighting the retailer’s “best comparable sales performance in over four years.”

He also pointed to disciplined cost management, lower inventories, and an improved balance sheet.

“We remain committed to delivering more value and a better experience to our customers,” Bender said.

Kohl’s reiterated its full-year fiscal 2026 guidance. The company continues to expect net and comparable sales to range from a 2% decline to flat, with adjusted operating margin projected between 2.8% and 3.4%.

Adjusted diluted earnings per share are expected in the range of $1 to $1.60, while capital expenditures are forecast between $350 million and $400 million.

The company also declared a quarterly cash dividend of $0.125 per share, payable June 24, 2026, to shareholders of record as of June 10, 2026.

Kohl's (KSS - Free Report) reported $3.17 billion in revenue for the quarter ended April 2026, representing a year-over-year decline of 2%. EPS of -$0.13 for the same period compares to -$0.13 a year ago.

The reported revenue represents a surprise of +0.18% over the Zacks Consensus Estimate of $3.16 billion. With the consensus EPS estimate being -$0.18, the EPS surprise was +27.78%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Kohl's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Number of stores - Total: 1,151 compared to the 1,153 average estimate based on three analysts.Comparable store sales - YoY change: -1.1% versus -1.9% estimated by three analysts on average.Revenue- Net sales: $3 billion compared to the $2.99 billion average estimate based on three analysts. The reported number represents a change of -1.7% year over year.Revenue- Other revenue: $169 million versus the three-analyst average estimate of $171.32 million. The reported number represents a year-over-year change of -8.2%.View all Key Company Metrics for Kohl's here>>>

Shares of Kohl's have returned -7.5% over the past month versus the Zacks S&P 500 composite's +5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Kohl's Corporation (NYSE:KSS) reported first quarter 2026 results that showed a smaller-than-expected loss and better-than-anticipated revenue and sales trends, sending its shares up about 17% on Thursday.

For the quarter ended May 2, 2026, Kohl’s posted a diluted loss of $0.13 per share, beating Wall Street expectations for a loss of $0.21 per share.

Revenue totaled $3 billion, slightly ahead of estimates of $2.99 billion.

Net sales declined 1.7% year-over-year, while comparable sales fell 1.1%, a smaller drop than the 1.7% decline analysts had forecast.

Kohl’s CEO Michael Bender said the company’s “key initiatives continue to drive progressive improvements to the business,” highlighting the retailer’s “best comparable sales performance in over four years.”

He also pointed to disciplined cost management, lower inventories, and an improved balance sheet.

“We remain committed to delivering more value and a better experience to our customers,” Bender said.

Kohl’s reiterated its full-year fiscal 2026 guidance. The company continues to expect net and comparable sales to range from a 2% decline to flat, with adjusted operating margin projected between 2.8% and 3.4%.

Adjusted diluted earnings per share are expected in the range of $1 to $1.60, while capital expenditures are forecast between $350 million and $400 million.

The company also declared a quarterly cash dividend of $0.125 per share, payable June 24, 2026, to shareholders of record as of June 10, 2026.

Key Takeaways Kohl's Q1 loss of 13 cents per share beat estimates despite a 1.7% sales decline.KSS gross margin rose 4 bps to 39.9% on higher proprietary brand penetration.Kohl's expects FY26 sales to range from down 2% to flat with EPS of $1.00-$1.60. Kohl's Corporation (KSS - Free Report) reported first-quarter fiscal 2026 loss per share of 13 cents, which was narrower than the Zacks Consensus Estimate of a loss of 18 cents. The bottom line remained flat compared with the prior year.

Total revenues were $3,167 million, down 2% from the prior-year quarter’s $3,233 million. The top line beat the Zacks Consensus Estimate of $3,161 million. The company’s net sales fell 1.7% to $2,998 million, while other revenues fell 8.2% to $169 million. Comparable sales were down 1.1% year over year. We expected comparable sales to decrease 1.8%.

Kohl’s Quarterly Margin HighlightsThis Zacks Rank #2 (Buy) company’s gross margin increased 4 basis points (bps) year over year to 39.9%. The improvement was primarily driven by higher penetration of proprietary brands. However, the improvement was partially offset by increased shipping costs resulting from greater digital sales penetration.

SG&A expenses dropped 1.6% to $1,145 million, reflecting combined savings in credit and corporate expenses. As a percentage of total revenues, SG&A expenses increased 15 bps to 36.2%. We anticipated SG&A expenses, as a percentage of net sales, to be 35.9%.

Operating income decreased to $46 million, down from $60 million in the prior year. Operating margin was 1.4%, reflecting a decrease of 41 bps year over year.

KSS’ Financial Health Snapshot & Other UpdatesKohl's ended the quarter with cash and cash equivalents of $429 million and shareholders’ equity of $4,024 million.

Net cash used in operating activities was $74 million for the three months ending May 2, 2026. Management expects capital expenditures in the range of $350 million to $400 million for fiscal 2026.

On May 20, 2026, Kohl’s declared a quarterly cash dividend of 12.50 cents per share, payable June 24, to its shareholders of record as of June 10.

What to Expect From KSS in FY26?For fiscal 2026, Kohl’s expects net sales and comparable sales to decline 2% to flat, with an adjusted operating margin of 2.8% to 3.4% and adjusted earnings per share in the range of $1.00 to $1.60.

The company’s shares have lost 16.5% in the past three months against the industry’s growth of 0.5%.

Image Source: Zacks Investment Research

Other Stocks to ConsiderFive Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States and currently holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 11.4% and 19.5%, respectively, from the year-ago reported numbers. FIVE delivered a trailing four-quarter earnings surprise of 63.4%, on average.

Ross Stores, Inc. (ROST - Free Report) , operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. It carries a Zacks Rank #2 at present. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average.

The Zacks Consensus Estimate for Ross Stores’ current fiscal-year sales and earnings implies an increase of 8.2% and 15.6%, respectively, from the prior-year levels.

Dillard's, Inc. (DDS - Free Report) operates retail department stores in the southeastern, southwestern, and midwestern areas of the United States. It carries a Zacks Rank #2 at present. DDS delivered a trailing four-quarter average earnings surprise of 27.9%.

The Zacks Consensus Estimate for Dillard's current fiscal-year sales and earnings implies an increase of 1.9% and 0.1%, respectively, from the prior-year levels.

Veteran retailer Kohl's (KSS +7.50%) was a rather unexpected darling on the stock market on Thursday. The retailer, which has had notable struggles over the past few years, delivered a first-quarter earnings report that surprised on the upside. Investors showed their appreciation by trading the stock up by almost 21% that day.

Investors love a double beat In the quarter, Kohl's reported net sales of $3 billion, down 1.7% year over year. That was on the back of comparable sales that fell by 1.1%. In a more promising development, its headline net loss under generally accepted accounting principles (GAAP) narrowed slightly to $14 million ($0.13 per share), from the year-ago shortfall of $15 million.

Image source: Getty Images.

Both figures topped analyst estimates, particularly on the bottom line. The consensus for net sales was $2.99 billion, while for per-share net loss it was $0.21.

In its earnings release, Kohl's quoted CEO Michael Bender as saying that "Our key initiatives continue to drive progressive improvements to the business, resulting in our best comparable sales performance in over four years."

"In addition, we continue to manage the business with great discipline, leading to strong expense management, cleaner inventories, and an improved balance sheet," he added.

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Retail revival? Kohl's reiterated its guidance for the full year 2026. It's forecasting that both net and comparable sales will be flat to 2% lower against 2025, while non-GAAP (adjusted) net income should range from $1 to $1.60 per share. The analyst consensus of $1.36 for the latter line item falls within the company's guidance range.

Like those bullish investors on Thursday, I see plenty to like with Kohl's results, even if net sales and "comps" are slumping.

These declines aren't enough to warrant abandoning the stock, in my view, and management is doing a decent job of reducing expenses (selling, general, and administrative costs were down by almost 2% in the quarter). Although still risky, Kohl's looks like a decent bet on a potential long-term turnaround.

On May 28, 2026, Kohl's Corp KSS shares rose 20.6%, closing at $15.59. The stock has experienced a 52-week range between $7.82 and $25.22, showcasing significant volatility in recent times.

GF Value™ verdict: Current price of $15.59 is 11.8% below the GF Value™ estimate of $17.67, indicating it is undervalued.GF Score™: The stock has a GF Score™ of 74/100, suggesting it is rated above average in terms of its overall investment quality.Most notable signal: There has been no insider buying in the last three months, indicating a lack of confidence from management. Is KSS Overvalued or Undervalued? Kohl's Corp KSS is currently trading at $15.59, which is below the GF Value™ estimate of $17.67. This represents an 11.8% margin of safety, suggesting that there is a potential opportunity for investors to capitalize on the stock's undervaluation. The GF Valuation label classifies KSS as "Modestly Undervalued," which indicates that while the stock is not significantly undervalued, it may present a favorable entry point under current circumstances. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the stock's current price indicates an undervaluation, it is important to approach this opportunity cautiously, given the recent trends and the broader economic environment affecting retail. The modest undervaluation does not mitigate the inherent risks associated with investing in a company that has had volatile performance in recent years.

How Does KSS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 6.6x 8.1x Forward P/E 11.5x N/A The current P/E (TTM) of 6.6x is 19% below its 5-year median of 8.1x, suggesting that Kohl's is trading at a lower valuation relative to its historical performance. This P/E analysis aligns with the GF Value™ verdict, confirming the stock's status as undervalued and reinforcing the potential opportunity for investors at this time.

What Does KSS's GF Score™ Tell Us? Metric Rating GF Score™ 74 Financial Strength 5/10 Profitability 6/10 Growth 4/10 Valuation 8/10 Momentum 8/10 The GF Score™ of 74/100 indicates that Kohl's has an above-average investment quality. The strongest area is its Valuation and Momentum ranks, both at 8/10, suggesting that the stock is currently favorably priced and experiencing positive price movements. However, the weakest areas are its Financial Strength and Growth ranks, which are rated at 5/10 and 4/10, respectively, indicating potential concerns about the company's financial stability and future growth prospects.

What Are Insiders Doing with KSS Stock? In the last three months, there has been no insider buying, with insiders selling $0.0M. This lack of activity might suggest that insiders do not have strong confidence in the stock's near-term prospects, which could be a cautionary signal for outside investors. Generally, insider activity is closely monitored as it can indicate management's outlook on the company's performance.

What This Means for Investors Based on the analysis, Kohl's Corp KSS is currently undervalued according to the GF Value™ estimate. While there are signs of potential opportunity, investors should remain aware of the risks involved, particularly given the company's recent financial performance and lack of insider confidence.

For the complete analysis, visit the Kohl's Corp KSS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is KSS's GF Score™?

KSS's GF Score™ is 74/100, indicating that it ranks above average in terms of investment quality based on key metrics.

Is KSS overvalued or undervalued?

KSS is currently undervalued, with a GF Value™ estimate of $17.67 compared to its current price of $15.59.

What is KSS's P/E ratio?

KSS has a P/E (TTM) of 6.6x, which is 19% below its 5-year median of 8.1x, indicating that it is trading below its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

© robertcicchetti / Getty Images

Pre-Market Stock Futures: Futures are trading higher to start a new trading week and a new month after what was an incredible May, and anybody who followed “Sell in May and Go Away” is having total seller’s remorse. All the major indices, except the Russell 2000, finished the day higher, helping them reach all-time highs, capping off one of the most incredible record-breaking months in years. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite closed at fresh all-time highs on Friday. The Dow Jones Industrials led the way, closing at 51,032, up 0.71%, while the S&P 500 ended the session at 7,580, up 0.22% and an amazing 5.1% for the month. The tech-heavy Nasdaq posted a similar gain, closing the day at 26,972, up 0.21%. As mentioned, the only loser on Friday was the small-cap Russell 2000, which finished the week at 2,919.

Treasury Bonds: Once again, as was the case all last week, yields across the Treasury curve were down except for the short T-bill maturities. The broader Treasury market has continued its rebound from sharp declines earlier in the month. Yields had climbed to near multi-decade highs, with the 30-year Treasury yield breaking above 5.18%, creating an attractive “buy the dip” opportunity for institutional investors looking to lock in elevated returns. The 30-year-long bond finished Friday at 4.97%, while the 10-year note was last seen at 4.44%.

Oil and Gas: Oil prices closed lower on Friday as hopes for a settlement with Iran are improving and could be finalized soon. Brent Crude finished the day at $91.10, down 1.73%, while West Texas Intermediate was last seen at $87.36, also down 1.73%. Natural gas closed the day at $3.29, up 0.15%, capping off a stellar week for the commodity. 

Gold: Published reports indicated that many of the top firms we cover on Wall Street have turned decisively bullish on the precious metals. After trading sideways since February, a move higher this summer could be in the cards. Gold closed trading on Friday at $4,538, up 0.97%, while Silver was last seen at $75.15, down 0.51%.

Crypto: On Friday, the broader cryptocurrency market traded mostly flat with a mild upward tilt, delivering a modest intraday recovery. Bitcoin stabilized in the mid-$73,000 range, bouncing back from an earlier slump that had tested April lows. Meanwhile, major altcoins showed strength in the morning session, with XRP leading the charge, posting solid gains. At 8 AM EDT, Bitcoin is trading at $72,620, while Ethereum is quoted at $1,981.

24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. 

Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Monday, June 1, 2026.  

Upgrades: Dell Technologies (NYSE: DELL | DELL Price Prediction) was upgraded to Equal Weight from Underweight at Morgan Stanley, which rocketed the target price for the shares to $448 from $170. Federal Realty Investment Trust (NYSE: FRT) was raised to Outperform from Neutral at Mizuho, which moved the target price for the shares up to $130 from $121. Kohl’s (NYSE: KSS) was raised to Buy from Neutral at Citigroup, which lifted the target price to $22 from $14. Marriott Vacations Worldwide (NYSE: VAC) caught a double upgrade from Sell to Buy at Goldman Sachs, which boosted the price target to $100 from $70. Zscaler (NASDAQ: ZS) was upgraded to Buy from Neutral at Guggenheim, with a $214 target price. Downgrades: Accenture (NYSE: ACN) was downgraded to Hold from Buy at Truist, which lowered the target price to $210 from $260. Black Sky Technology (NYSE: BKSY) was cut to Hold from Buy at Jefferies, with a $50 target price. The analysts noted that the shares were up 159% this year, so a valuation cut was warranted. Campbell’s (NYSE: CPB) was downgraded to Equal Weight from OverweightatStephens, which trimmed the target price for the legacy food company to $21 from $23. Caesars Entertainment (NASDAQ: CZR) was downgraded to Hold from Buy at Deutsche Bank, which trimmed the target price to $31 from $35. Redwire (NYSE: RDW) was downgraded to Hold from Buy at Jefferies, which raised the target price for the stock to $24 from $13.  This was also a valuation cut as the shares are up 223% in 2026. Initiations: Carnival (NYSE: CCL) was initiated with a Buy rating at Loop Capital, with a $36 target price. HawkEye 360 (NYSE: HAWK) was initiated with a Buy rating at Goldman Sachs, with a $42 target price objective. Baird initiated coverage of the shares with an Outperform rating and a $41 target, while Raymond James started coverage with a Strong Buy rating and a $40 target price. The stock was a recent successful IPO. International Business Machines (NYSE: IBM) was started with an Outperform rating at Citizens, which has a $350 target price for the venerable technology company. Microsoft (NASDAQ: MSFT) was initiated with an Outperform rating at Citigroup, with a $550 target price for the legacy technology giant. Realty Income (NYSE: O) was assumed with a Buy rating at Jefferies, which trimmed the target price for the legacy REIT to $69 from $75.

Key Takeaways KSS posted a $0.13 loss as net sales slipped 1.7% to $3.17B; comps fell 1.1%.KSS expanded value messaging with broader coupon eligibility and more private brands; juniors rose 10%.KSS inventory fell 8% YoY as digital sales grew 4%, including an AI gift finder launched via Google Gemini Kohl’s Corporation (KSS - Free Report) used its first-quarter fiscal 2026 call to argue that operational fixes are starting to show up in the numbers. Management pointed to the best comparable sales performance in more than four years and a more stable core card customer.

The call mattered less for the headline loss and more for what executives said about assortment, value, inventory and digital execution as they try to rebuild consistency

Kohl’s Sees Early Benefits From ResetChief executive officer Michael Bender said the quarter showed progressive improvement after a year spent resetting the business. Comparable sales fell 1.1%, but he framed that as a meaningful step forward given the backdrop and the company’s recent trend.

Bender said Kohl’s card customers stabilized to a flat comp, a sharp improvement from the mid-single-digit decline in the fourth quarter. He also highlighted a 6% comparable-sales increase in proprietary brands as evidence that opening price points and product quality are resonating.

The financial release supported that steadier tone. Net sales declined 1.7% to $3.17 billion, while the loss per share was $0.13, matching the prior year. That result was better than the Zacks Consensus Estimate for a loss of $0.18, producing a 27.78% surprise, while revenue came in just above the $3.16 billion consensus.

KSS Leans Harder Into Value and Private BrandBender returned repeatedly to value as Kohl’s central message for a pressured low- to middle-income customer. He said the company is expanding coupon eligibility, increasing proprietary-brand inventory and using marketing to reinforce its By Kohl’s labels.

Management tied some of the strongest category commentary to that strategy. Women’s, kids, accessories and home were flat to slightly positive, while juniors rose 10%, helped by the SO brand. Executives also cited strength in LC Lauren Conrad, Sonoma and Flex.

Chief financial officer Jill Timm said private brands are serving both loyal and newer shoppers because they fill a gap at more affordable opening price points. In Q&A, she said those brands are now being used more deliberately to restore relevance with Kohl’s charge customers and improve traffic.

Kohl’s Says Inventory Work is Paying OffInventory discipline was one of the clearest areas of management confidence. Timm said inventory fell 8% from a year ago, yet receipts rose 1%, which she described as evidence of cleaner and fresher goods rather than a pullback in investment.

She said apparel depth is being planned in the high single digits, while choice counts are planned down by a similar amount. That shift is meant to improve what management called trip assurance or the ability for customers to find the right item, size and color in stock.

Bender said spring seasonal sales rose in the mid-teens after the company corrected earlier planning and allocation mistakes. Timm added that cleaner inventory is giving Kohl’s room to chase demand and preserve regular-price selling, even as it invests part of that flexibility back into sharper value.

KSS Points to Digital Momentum and Store GapsTimm said stores underperformed in the quarter, declining in the low single digits as transactions weakened. Digital sales, by contrast, grew 4%, helped by higher traffic and continued expansion of the marketplace business.

Management argued that digital improvements are becoming more tangible. Bender highlighted a newly launched AI-powered gift finder through Google Gemini, while executives also pointed to better navigation, curated online experiences, clearer delivery information and easier returns.

That digital momentum is not without a tradeoff. Timm said stronger e-commerce penetration is pressuring margins through higher shipping costs, which largely offset the gross-margin benefit from proprietary brands in the quarter. Gross margin still improved by 4 basis points to 39.9%.

Kohl’s Reaffirms Outlook but Flags Consumer PressureKohl’s reaffirmed its fiscal 2026 outlook for comparable sales ranging from down 2% to flat, adjusted operating margin of 2.8% to 3.4% and adjusted earnings per share of $1.00 to $1.60.

Timm said the company was pleased with both the first quarter and the start of the second quarter, but she stressed that guidance still reflects a cautious view of discretionary spending. She said the core consumer remains financially pressured and selective.

She also noted that guidance excludes any benefit from potential tariff refunds. Kohl’s submitted $140 million of claims in the first quarter and said total eligible refunds are $190 million, but none were received during the period.

KSS Q&A Focused on What Must Improve NextAnalyst questions centered on durability, margins, stores, Sephora and capital allocation. In response to Baird, management sounded more explicit that private brands, spring execution and earlier seasonal transitions are driving the recent improvement.

Questions from TD Cowen pushed on store traffic and Sephora. Executives said men’s and footwear should improve as assortment changes and back-to-school newness arrives, while Sephora is expected to track closer to company performance as MAC rolls out chainwide and skincare adds new brands.

The balance-sheet discussion also drew attention. Timm said Kohl’s ended the quarter with $429 million in cash and no borrowings on its asset-based lending facility, repurchased $50 million of debt at a discount and still sees free cash flow of roughly $500 million to $600 million this year.

What the Zacks Signals IndicateKSS carries a Zacks Rank #3 (Hold), along with a Value Score of A, a Growth Score of B, a Momentum Score of C and a VGM Score of A. In Zacks terms, the Value and VGM grades point to relatively stronger value and combined style characteristics, while the Hold rank signals more balanced near-term expectations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

That mix does not point to a decisive directional call on its own. A Zacks Rank #3 can still be held, and the stronger style grades improve the stock’s profile within that rank, but estimate revisions remain the key driver in the system and the rank can change after analysts fully digest the quarter.

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Beaten-down retail names trading under $15 are getting a second look from value-focused investors this spring, especially the ones quietly improving cash flow while the headlines stay grim. With the consumer split into a clear K-shape and an ultra-hawkish Federal Reserve regime under Kevin Warsh squeezing rate-sensitive sectors, institutional capital has largely left department stores for dead. That setup is exactly where mispricings tend to live.

With that in mind, here is one stock trading under $15 where the operational data and the share price are telling very different stories.

Kohl’s (NYSE: KSS) Kohl’s (NYSE:KSS | KSS Price Prediction) is a U.S. department store chain headquartered in Menomonee Falls, Wisconsin, operating more than 1,100 locations along with a growing digital business anchored by Sephora at Kohl’s.

Shares closed at $13.06 on May 22, 2026, after a 35.35% year-to-date drawdown from $20.20. For a retail investor, that price tag is meaningful: it pairs a sub-$15 entry point with a name that still threw off $1.008 billion in free cash flow last fiscal year. The market is pricing this like a melting ice cube; the financials are not cooperating with that thesis.

On fundamentals, Kohl’s trades at a trailing P/E of 5 and a price-to-book of 0.352, with FY2025 EPS of $2.38. The dividend yield sits at 3.94% on a $0.50 annual payout, putting it firmly in high-yield territory at this share price. The Wall Street consensus price target of $16.96 implies double-digit upside from current levels, though the rating mix leans cautious with 2 Buys, 7 Holds, 2 Sells, and 2 Strong Sells.

The bull case is the gap between operations and sentiment. Q4 FY2026 delivered adjusted EPS of $1.07 versus $0.8512 expected, a 25.7% beat, on revenue of $5.17 billion that topped estimates by 9.49%. Gross margin expanded 25 basis points to 33.1%, SG&A declined 4.9%, and inventory fell 7% year over year. Most striking, revolving credit borrowings collapsed from $749 million to $45 million, and free cash flow surged 453.85% to $1.008 billion. CEO Michael Bender said, “We are ending 2025 in a stronger position than we started… we made meaningful progress, despite our Q4 topline coming in softer than our expectations.”

The growth flywheel is also turning. Sephora at Kohl’s completed its full-chain rollout and is tracking toward a $2 billion beauty business, with MAC now in over 850 stores alongside Tarte and Charlotte Tilbury. Digital penetration rose 220 basis points in Q4, and the impulse queueing line drove over 40% category sales growth.

The risk cutting against this thesis is real. Comparable sales fell 2.8% in Q4, traffic remains soft, and the dividend was cut 75% from $0.50 to $0.125 quarterly in 2025 to preserve balance sheet flexibility. Macro pressure is showing up in the data: gasoline spending spiked to $503.7 billion in March 2026, squeezing discretionary apparel budgets, while services already represent 69% of total PCE. There is also a 10% interest rate on $360 million in senior secured notes due 2030 to service. But these are known knowns, and they appear baked into a stock trading at 0.0944 times sales. With cash flow rebuilding and the balance sheet de-risking, the setup under $15 looks like a turnaround machine the market refuses to price.

Kohl’s has plenty of cyclical and structural questions still to answer. Do your own diligence, size positions to your risk tolerance, and weigh whether the cash-flow recovery story is one you want to own through another uneven consumer cycle.

Kohl's Donates $1 Million to Create Active Play and Wellness Spaces at Boys & Girls Clubs Nationwide Kohl’s (NYSE: KSS) announced today $1 million in wellness grants to transform facilities at nine Boys & Girls Clubs locations nationwide, funding projects ranging from playgrounds and turf fields to dedicated youth support spaces. Reflecting Kohl’s ongoing commitment to family health and wellness for all, the funding will support upgrades that help young people develop healthy habits, strengthen their well-being, and access resources designed to serve Club youth and communities for generations.

“Kohl’s and Boys & Girls Clubs of America share a commitment to helping young people and families nationwide access the resources and support they need to lead healthy lives,” said Christie Raymond, Kohl’s Chief Marketing Officer. “We’re honored to be in a position to support the incredible work Clubs do every day by funding projects that create spaces for youth to stay active, build confidence, and develop important life skills that can support them far into the future.”

“Kohl’s continued investment in Boys & Girls Clubs of America is helping create spaces where young people can grow stronger — physically, emotionally, and socially,” said Jennifer Bateman, Senior Vice President of Youth Development at Boys & Girls Clubs of America. “These wellness grants will give Club youth access to safe, welcoming environments where they can develop healthy habits that will benefit them for years to come. We’re grateful for Kohl’s partnership and shared commitment to supporting kids and families in communities across the country.”

Selected based on community need, the following projects will be completed this summer:

Boys & Girls Clubs of the Valley (Phoenix, Ariz.): $150,000 grant to install an outdoor turf flag football field Boys & Girls Clubs of Metro Atlanta (Atlanta, Ga.): $200,000 grant to upgrade playgrounds, improve sports and movement spaces, and add a dedicated teen wellness area across five Atlanta-area Club sites Boys & Girls Clubs of Southeast Missouri (Cape Girardeau, Mo.): $45,000 grant to provide fitness equipment and wellness resources for the new Teen Center Boys & Girls Clubs of Philadelphia (Philadelphia, Pa.): $205,000 grant to complete a broader wellness center expansion, adding a fitness center, outdoor recreation space, and Serenity Garden Boys & Girls Clubs of Austin (Austin, Texas): $100,000 grant to establish “Cool, Creative Corners” across 28 Club sites throughout the Austin area, providing teens with dedicated spaces to manage stress and express themselves Boys & Girls Clubs of Collin County (Frisco, Texas): $100,000 grant to create a teen-focused wellness room and upgrade the lounge to better support mental and emotional health Boys & Girls Clubs of McAllen (McAllen, Texas): $105,000 grant to install a gym floor and fund additional essential sports equipment Boys & Girls Clubs of Pleasants County (St. Mary’s, W. Va.): $50,000 grant to expand teen programming with the addition of calming spaces, a teen café, and a dedicated chill zone that supports emotional well-being Boys & Girls Clubs of Janesville (Janesville, Wis.): $45,000 grant to create a dedicated teen wellness space designed to support mental health through sensory elements, flexible seating, and a café-style environment Kohl’s and Boys & Girls Clubs of America kicked off the first round of projects last week with events for youth at Boys & Girls Clubs of the Valley in Arizona and Boys & Girls Clubs of Metro Atlanta in Georgia. Youth were surprised with field day events and activities; Kohl’s is also donating Tek Gear active apparel to Club kids and staff.

Since 2017, Kohl’s Cares has given nearly $20 million total to BGCA in support of youth health and wellness, trauma-informed care training for staff, shopping grants for Club kids, the Youth of the Year program, and more.

Funding is made possible through Kohl’s Cares Goods For Good®, which donates 100 percent of the net profit to nonprofits supporting families nationwide.

About Kohl’s

Kohl’s (NYSE: KSS) is a leading omnichannel retailer built on a foundation that combines great brands, incredible value and convenience for our customers. Kohl’s is uniquely positioned to deliver against its long-term strategy and its purpose to take care of families’ realest moments. Kohl's serves millions of families in its more than 1,100 stores in 49 states, online at Kohls.com, and through the Kohl's App. With a large national footprint, Kohl’s is committed to making a positive impact in the communities it serves. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com.

About Boys & Girls Clubs of America

For more than 160 years, Boys & Girls Clubs of America (BGCA.org) has provided a safe place for kids and teens to learn and grow. Clubs offer caring adult mentors, fun and friendship, and high-impact youth development programs on a daily basis during critical non-school hours. Boys & Girls Clubs programming promotes academic success, good character and leadership, and healthy lifestyles. Over 5,500 Clubs serve more than 4 million young people through Club membership and community outreach. Clubs are located in cities, towns, public housing and on Native lands throughout the country, and serve military families in BGCA-affiliated Youth Centers on U.S. military installations worldwide. The national headquarters is located in Atlanta. Learn more about Boys & Girls Clubs of America on Facebookand LinkedIn.

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