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Baird analyst Mark Altschwager maintains Kohl's (NYSE:KSS) with a Neutral and raises the price target from $19 to $20.
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Filed: 2026-08-31 AccNo: 0001193125-26-377068 Size: 196 KB Item 5.02: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers Item 7.01: Regulation FD Disclosure Item 9.01: Financial Statements and Exhibits
Kohl's reported adjusted Q2 EPS of $1.28, up 128.6% year-over-year, beating expectations despite a 0.9% revenue decline. The company raised full-year adjusted EPS guidance to $1.80-$2.40 and improved its sales outlook. However, margin expansion was significantly aided by $100M in tariff refunds, and the company faces execution challenges in the critical holiday season ahead.
Kohl's (KSS) trades at a discount to market benchmarks with improved earnings guidance raised to $1.80-$2.40 per share and strengthened liquidity ($821M cash). However, negative comparable sales trends and recent downward earnings estimate revisions temper the recovery outlook. The stock carries a Zacks Rank #1 with a Value Score of A but Momentum Score of C, suggesting measured optimism rather than confirmed recovery.
Kohl's shares gained 15.6% over three months following a strong Q2 earnings beat with adjusted EPS of $1.28 versus consensus of $0.55. The company showed improved merchandising, expanded gross margins, and strengthened liquidity. However, comparable sales remain negative and full-year guidance calls for flat to down 1.5% sales, leaving the top-line recovery unproven. The stock trades above its five-year valuation median, raising questions about sustainability.