By Connor Hart

Kohl's raised its full-year outlook after posting a surprise profit in the fiscal third quarter, and the company said its turnaround is gaining momentum.

The department-store chain on Tuesday guided for sales to fall 3.5% to 4% this year, compared with a prior outlook for a 5% to 6% drop. Comparable sales, or those from stores and digital channels in operation for at least a year, are now expected to be down 2.5% to 3%, compared with a previous view of down 4% to 5%.

For its quarter ended Nov. 1, Kohl's posted a profit of $8 million, or 7 cents a share, compared with $22 million, or 20 cents a share, a year earlier.

Stripping out one-time items, earnings were 10 cents a share. Analysts surveyed by FactSet had expected an adjusted loss of 16 cents a share.

Sales slipped 2.9% to $3.41 billion but came in ahead of the $3.32 billion that Wall Street modeled. Total revenue fell to $3.58 billion from $3.71 billion a year earlier.

Comparable sales fell 1.7%, though the drop wasn't as steep as the 3.7% decline analysts projected.

The report came after Kohl's on Monday named Michael Bender as its permanent chief executive, electing to elevate its interim leader as it aims to turn around years of slumping sales. Bender had served as the retailer's interim CEO since May, after its then-chief, Ashley Buchanan, was fired for violating the company's ethics code.

Bender, who is the Menomonee Falls, Wis., company's fourth CEO in as many years, said Kohl's continues to make progress against its turnaround initiatives.

"We are focused on building on this momentum, as we remain committed to delivering quality products, great value, and a frictionless experience to our customers in an uncertain macroeconomic environment," he said.

Shares jumped 26%, to $19.77, in premarket trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

November 25, 2025 08:08 ET (13:08 GMT)

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