Kohl's shares soar on better-than-expected earnings
Kohl's shares shot up over 17% after the company reported second-quarter results that topped Wall Street forecasts.
Adjusted earnings per share hit 56 cents—almost double what analysts expected—even though sales dropped by about 5%.
With $3.3 billion in revenue beating estimates, the stock jumped over 17% following the results.
Interim CEO discusses shift to budget brands
Interim CEO Michael Bender pointed out that more customers are choosing budget brands because of economic pressures, noting that this trend is currently affecting sales.
Still, Kohl's managed to boost net income to $153 million (up from $66 million last year), thanks to better profit margins and lower costs.
Optimistic outlook for the rest of 2024
Kohl's has had three CEOs since late 2022, with Bender stepping in after Ashley Buchanan was let go following an internal investigation.
Despite all the changes, Kohl's now expects full-year sales to fall a bit less than before (down 5-6%) and adjusted earnings per share between $0.50-$0.80—showing some cautious optimism for the rest of 2024.