Kohl’s (KSS) Stock Soars 30% Today on Surprise Q3 2025 Profit and Raised Outlook

Kohl’s Corporation (NYSE: KSS) is back in the spotlight on Tuesday, November 25, 2025, with KSS stock ripping higher after the department-store chain posted a surprise third-quarter profit, raised its full‑year 2025 guidance, and highlighted progress under its freshly confirmed CEO, Michael J. Bender. ^[1]

KSS Stock Price Today: Huge Post-Earnings Reversal

As of the latest trade at 15:31 UTC on Tuesday, Kohl’s stock is changing hands around $20.66, up about $4.93, or 31%, from Monday’s close near $15.73. Intraday, KSS has traded between $15.76 and $21.30, putting the shares back within touching distance of their 52‑week high around $21.39. ^[2]

Trading activity is intense: roughly 15.7 million KSS shares have already changed hands today, more than three times the stock’s recent 20‑day average volume of about 4.9 million shares. ^[3]

The surge comes after a tough stretch. Just last week, MarketWatch reported KSS logging multiple consecutive down days and closing as low as $15.00 on Thursday, November 20, leaving the stock nearly 30% below its 52‑week high. ^[4] Today’s move effectively erases that slump in a single session.

Adding fuel to the fire: Kohl’s is one of the most heavily shorted names in U.S. retail. Recent filings show about 29 million shares sold short, representing roughly 26% of the share float, with a short‑interest ratio of around 6–7 days to cover. ^[5] Analysts at Seeking Alpha have also flagged KSS as “highly shorted,” noting that such a large bearish position can amplify volatility when good news hits. ^[6]

That combination of a surprise profit, raised guidance, and elevated short interest is exactly the recipe for the meme‑style spike that commentators are now likening today’s move to. ^[7]

Q3 2025 Earnings Recap: Modest Sales Decline, Better Margins, Surprise Profit

Kohl’s third quarter of fiscal 2025 covers the 13‑week period ended November 1, 2025. Here’s what the company reported: ^[8]

Net sales:$3.4 billion, down 2.8% year over year (from $3.5 billion).
Total revenue:$3.58 billion, down about 3.6% from the prior‑year quarter.
Comparable sales: down 1.7%, but a sharp improvement versus the high single‑digit declines seen in 2024. ^[9]
Gross margin:39.6%, up roughly 50 basis points from last year, reflecting tighter inventory and a more disciplined promotional mix. ^[10]
SG&A expenses:$1.3 billion, down 2.1%, though SG&A rose as a percentage of revenue to 35.3%. ^[11]
Operating income:$73 million, compared with $98 million a year ago.
Net income:$8 million, versus $22 million in Q3 2024.
GAAP diluted EPS:$0.07, down from $0.20 last year.
Adjusted EPS:$0.10, versus $0.20 in the prior‑year period. ^[12]

Wall Street had been bracing for a loss. According to TipRanks, analysts were expecting an adjusted loss of about $0.16 per share, with revenue around $3.32 billion. ^[13] Delivering a $0.10 adjusted profit and roughly $3.41 billion in sales therefore represents a meaningful beat on both the top and bottom line.

On the balance‑sheet and cash‑flow side, Kohl’s emphasized continuing cleanup work:

Inventory ended the quarter at roughly $3.9 billion, down about 5% year over year.
Operating cash flow improved to $124 million, versus a cash outflow in the comparable quarter last year. ^[14]

In short: sales are still shrinking, but less quickly, margins are inching higher, and the company is generating cash again — enough to convince many skeptics that the turnaround narrative might finally be getting some traction.

2025 Outlook: Big Guidance Hike and a Confirmed Dividend

Perhaps the most market‑moving piece of the release was the upgraded full‑year 2025 guidance. Kohl’s now expects: ^[15]

Net sales: decline of 3.5% to 4.0% (previous guidance: a drop of 5% to 6%).
Comparable sales: decline of 2.5% to 3.0% (previously 4% to 5% lower).
Adjusted operating margin:3.1% to 3.2%.
Adjusted diluted EPS:$1.25 to $1.45, more than doubling the prior range of $0.50 to $0.80.

In other words, Kohl’s is still planning for a down year on sales, but it now expects to earn more than twice as much adjusted profit as it thought earlier in 2025 — a classic “beat and raise” setup that tends to energize momentum traders. ^[16]

The company also reaffirmed its capital‑return plans:

Quarterly dividend: Kohl’s Board declared a cash dividend of $0.125 per share, payable December 24, 2025 to shareholders of record as of December 10, 2025. ^[17]
On an annualized $0.50 per share, that’s a dividend yield of roughly 2.4% at today’s price near $20.66. ^[18]

The mix of higher earnings guidance and a steady dividend is exactly the kind of message many value‑oriented investors want to hear from a challenged retailer heading into the all‑important holiday quarter.

Leadership Update: Michael J. Bender Confirmed as CEO

Today’s earnings pop follows a big leadership decision announced yesterday. On November 24, 2025, Kohl’s Board officially named Michael J. Bender as permanent Chief Executive Officer, effective November 23, 2025, after he had served as interim CEO since May 1. ^[19]

Bender brings roughly 30 years of retail and consumer‑goods experience, including senior roles at Eyemart Express, Walmart, and L Brands. ^[20] In the appointment press release, the Board highlighted his early progress in:

stabilizing operations,
driving both short‑ and long‑term strategy, and
pushing cultural and organizational change. ^[21]

In the Q3 earnings commentary, Bender emphasized discipline, strong cash‑flow generation, and maintaining a healthy balance sheet as foundations for repositioning Kohl’s for future growth. ^[22]

For investors, the CEO transition helps reset the narrative away from prior strategy missteps and leadership turbulence toward a clearer turnaround plan anchored in:

store portfolio optimization (including targeted closures),
category re‑mix (more dresses, activewear, and home), and
the continued rollout of Sephora at Kohl’s shop‑in‑shop locations.

Strategic Backdrop: Store Closures, Sephora at Kohl’s, and Real Estate Moves

Behind the quarter‑to‑quarter numbers, Kohl’s has been reshaping its footprint and merchandising strategy throughout 2025:

In January 2025, the company announced plans to close its San Bernardino e‑commerce fulfillment center at the end of its lease in May and shut 27 underperforming stores by April 2025, out of a base of more than 1,150 locations. ^[23]
The closures are part of a broader effort to shift volume toward more productive locations and to lean on newer fulfillment centers and ship‑from‑store capabilities. ^[24]

At the same time, Kohl’s partnership with Sephora has been a rare bright spot. By integrating Sephora shops inside Kohl’s stores, the retailer has:

boosted beauty category growth,
driven cross‑shopping into apparel and home, and
helped differentiate Kohl’s from other mid‑tier department stores. ^[25]

Industry analysis from ReportLinker notes that Sephora at Kohl’s delivered double‑digit growth in beauty sales in 2024 and has helped cushion the impact of broader retail weakness. ^[26] That momentum likely contributed to the better‑than‑feared comp trends seen in today’s Q3 update.

Is Today’s Move a Short Squeeze? Why KSS Is So Volatile

KSS doesn’t just look like a value stock — structurally, it also looks like a short‑squeeze candidate:

Short interest: about 29.3 million shares, roughly 26% of the float, and around 6–7 days to cover based on recent average volume. ^[27]
Today’s volume: already ~15.7 million shares vs a 20‑day average under 5 million. ^[28]

When a heavily shorted stock posts unexpectedly good earnings and raises guidance, short sellers often rush to buy shares back to limit losses — which can further drive the price up. Seeking Alpha’s pre‑market note specifically called out KSS’s short interest “over 26% of float” as a key factor that could intensify volatility around this beat‑and‑raise quarter. ^[29]

Some outlets have already described today’s action as a “meme‑like rally”, as the stock spikes more than 30% in a matter of hours after being deeply out of favor just days earlier. ^[30]

How KSS Valuation Looks After the Spike

Even after today’s surge, Kohl’s still trades at what many would call deep‑value levels compared with typical retailers:

Over the last 12 months, Kohl’s generated about $15.75 billion in revenue and $195 million in net income, for a profit margin near 1.2%. ^[31]
Free cash flow over that period was estimated around $819 million, or roughly $7.31 per share, implying a free cash flow yield in the mid‑30% range at recent prices. ^[32]
Data from Finviz and StockAnalysis put KSS at roughly 0.15× trailing sales and about 0.6× book value, even after the rally. ^[33]

On paper, those numbers make KSS look inexpensive. But Wall Street remains cautious:

StockAnalysis pegs the average 12‑month price target at about $11.88, well below today’s ~$21 level, with an overall “Sell” consensus. ^[34]
TipRanks likewise reports a “Moderate Sell” rating, with most covering analysts in the Hold or Sell camp and an average target in the low‑teens. ^[35]

The disconnect between value‑style metrics (cheap on sales, book, and cash flow) and cautious analyst sentiment (low targets, weak growth expectations) is part of what makes KSS such a battleground stock.

Key Questions for KSS Stock After Q3 2025

With KSS stock exploding higher today, investors and traders will be wrestling with several big questions in the days ahead:

Can comps sustain their improvement?
Comparable sales are still negative, but far better than last year’s steep declines. If the improvement stalls, the guidance upgrade could prove optimistic. ^[36]
How durable are margin gains?
Gross margin expanded by about 50 basis points in Q3. The key test will be whether Kohl’s can hold those gains through a highly promotional holiday season without sacrificing traffic. ^[37]
Will the store and distribution center closures pay off?
Shuttering a fulfillment center and 27 stores should cut costs and boost productivity, but there’s always a risk of lost sales in affected markets. ^[38]
Can Sephora and category re‑mix drive sustainable growth?
Beauty has been a rare standout; if double‑digit Sephora growth and better apparel assortments continue, Kohl’s may be able to offset ongoing pressure in weaker categories. ^[39]
What does the balance sheet mean for long‑term risk?
Kohl’s carries significant debt (around $6.8 billion) versus a market cap under $3 billion even after today’s surge, so leverage remains a key consideration if the macro backdrop worsens. ^[40]
How will elevated short interest shape future volatility?
With more than a quarter of the float sold short and days‑to‑cover near a week, KSS could remain extremely volatile around future news — both up and down. ^[41]

Bottom Line on KSS Stock Today

For Tuesday, November 25, 2025, KSS stock is one of the biggest stories in U.S. retail:

A surprise Q3 profit,
a materially raised 2025 outlook,
confirmation of a new, experienced permanent CEO, and
an already stretched short base

have combined to send Kohl’s shares up more than 30% and back near their 52‑week high. ^[42]

Whether this is the start of a durable turnaround rally or just a sharp short squeeze will depend heavily on the company’s holiday performance, execution on store and cost initiatives, and the ability of Bender’s team to turn better cash flow and Sephora momentum into sustainable growth.

For now, KSS is firmly back on the radar of both value investors and short‑term traders — and likely to remain a high‑volatility name as the story unfolds.

Disclosure: This article is for informational purposes only and does not constitute investment, tax, or financial advice. Always do your own research or consult a qualified professional before making investment decisions.

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