Kohl’s (KSS.US) reported better-than-expected first-quarter results for fiscal 2026, indicating that the transformation led by CEO Michael Bender is beginning to yield positive results. The financial report shows that Kohl’s Q1 net sales were approximately $3.0 billion, a decrease of 1.7% year-over-year, slightly above market expectations of $2.99 billion. Comparable sales declined by 1.1%, a smaller drop than the market’s forecast of a 1.7% decline and an improvement from the 2.8% decrease in the fourth quarter of fiscal 2025. The net loss was $14 million, compared to a net loss of $15 million in the same period last year. The loss per share was $0.13, better than the market expectation of a $0.19 loss per share. Previously, former CEO Ashley Buchanan was dismissed for directing millions in business to individuals with undisclosed personal relationships, after which Bender assumed the role of CEO. Bender is attempting to reverse the company’s years of declining sales by focusing on private brands and enhancing both in-store and online shopping experiences. In a statement, Bender said, “We are pleased with the start to 2026. Our key initiatives continue to drive gradual business improvement, achieving the best comparable sales performance in over four years. Additionally, we continue to manage the business with high discipline, resulting in strong expense control, healthier inventory levels, and an improved balance sheet.” He noted that the company reduced borrowings under its revolving credit facility by $545 million and nearly tripled its cash and cash equivalents. At the same time, Kohl’s reaffirmed its full-year guidance, expecting net sales and comparable sales to range from a 2% decline to flat. This implies full-year net sales between $14.5 billion and $14.8 billion, with the midpoint of $14.65 billion below the market expectation of $14.87 billion. The company also expects full-year adjusted earnings per share to be between $1.00 and $1.60, with the midpoint of $1.30 below the market expectation of $1.34. Due to persistent sales declines and macroeconomic pressures, Kohl’s stock had fallen more than 35% year-to-date as of Wednesday’s close. However, Kohl’s Q1 revenue and profit exceeding market expectations, along with its strongest comparable sales performance in four years, were sufficient to offset the disappointing full-year guidance. Boosted by these positive results, Kohl’s shares surged more than 17% in pre-market trading on Thursday.