Kohl's Corporation (KSS) witnessed a dramatic stock price surge of 34.27%, closing at $21.12, driven by stronger-than-expected third-quarter results and the official appointment of Michael J. Bender as CEO.
Despite a 2.8% decline in net sales to $3.4 billion and a 1.7% drop in comparable sales, the company demonstrated resilience with a 51 basis point improvement in gross margin to 39.6% and a 2.1% reduction in SG&A expenses.
Operating income was $73 million, compared to $98 million in the prior year, while adjusted operating income reached $77 million. Net income stood at $8 million, or $0.07 per diluted share, with adjusted net income at $11 million, or $0.10 per share.
Cash flow from operating activities turned positive with a $124 million gain, a significant reversal from a $195 million outflow in the same quarter of 2024, and inventory decreased by 5% year-over-year.
Michael J. Bender, who had been interim CEO since May 2025, was named permanent CEO, emphasizing the company's progress and focus on navigating macroeconomic challenges. Kohl's revised its full-year 2025 outlook, projecting a net sales decline of 3.5% to 4% and comparable sales decrease of 2.5% to 3%, with adjusted operating margin expected between 3.1% and 3.2%.
