Kohl's Corporation (KSS) stock surged 5.04% in intraday trading on Thursday, as investors responded positively to the company's ongoing turnaround efforts. The department store chain, which has faced significant challenges in recent months, appears to be gaining traction with its comprehensive plan to stabilize finances and improve its business foundation.

Despite reporting weak first-quarter results, including a 4.1% year-over-year revenue decline and a net loss of $0.13 per share, Kohl's has demonstrated a commitment to cost control and operational streamlining. The company's focus on reducing debt, rebuilding its cash position, and enhancing its shopping experience seems to be resonating with investors.

Key elements of Kohl's turnaround strategy include a significant store refresh initiative covering 613 locations, adjustments to its product mix, and an expanded partnership with beauty products specialist Sephora. Additionally, the company's recent dividend cut is expected to save approximately $164 million in cash annually, which will help address its current $2.1 billion in balance sheet debt.