What Happened?
Shares of department store chain Kohl’s (NYSE:KSS) fell 7.2% in the afternoon session after negative sentiment grew regarding the company's long-term business health, fueled by analyst ratings and media commentary.
The decline occurred even after the stock surged significantly following its third-quarter 2025 earnings report. However, reports highlighted that despite cost-cutting measures that improved profits, the company still lacked a clear strategy to address its declining revenue. This view was supported by previous results that showed a drop in net sales. A consensus of eleven analysts established a 'Sell' rating on the stock, reinforcing the pessimistic outlook on its future performance.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Kohl's? Access our full analysis report here.
What Is The Market Telling Us
Kohl’s shares are extremely volatile and have had 51 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 8.1% on the news that the company appointed Michael Bender as its permanent chief executive and raised its full-year financial forecast after reporting better-than-expected third-quarter results. Investors cheered the official appointment of Bender, who had served as interim CEO since May 2025, signaling a more concrete path forward for the retailer. While third-quarter net sales saw a slight decline of 2.8%, Kohl's delivered a stronger-than-expected performance with improved gross margins and higher-than-anticipated earnings per share. The positive results were driven by an increase in store traffic, particularly during the back-to-school season. Following the strong quarter, the company raised its full-year 2025 outlook, now forecasting a smaller net sales decrease than previously guided. The positive developments led analysts at firms like Baird and Evercore ISI Group to raise their price targets on the stock, reflecting increased confidence in the company's direction under its new leadership.
Kohl's is up 63.9% since the beginning of the year, and at $22.99 per share, it is trading close to its 52-week high of $24.71 from December 2025. Investors who bought $1,000 worth of Kohl’s shares 5 years ago would now be looking at an investment worth $595.29.
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