Kohl’s Corporation (NYSE:KSS) stock rose Wednesday after UBS and Telsey analysts raised their respective price forecasts following a strong earnings beat.

Earnings Snapshot

On Tuesday, the company reported third-quarter adjusted earnings per share of 10 cents, beating the analyst consensus estimate of a loss of 20 cents.

Quarterly revenue came in at $3.41 billion, ahead of the Street’s $3.32 billion estimate.

Also Read: These Analysts Boost Their Forecasts On Kohl’s After Better-Than-Expected Q3 Results

Kohl’s raised its fiscal 2025 adjusted EPS guidance to $1.25–$1.45 (from 50–80 cents), versus the consensus of 71 cents. The company expects net sales to decline between 3.5% and 4%.

In the earnings call, management said that they expect the macroeconomic environment to remain uncertain and anticipates that customers will continue to be “increasingly choiceful” and seeking more value, particularly among low-to-middle-income consumers, into the fourth quarter (holiday season).

Analyst Views

Telsey Advisory Group analyst Dana Telsey maintained a Market Perform and raised the price forecast from $16 to $23 on stronger results and positive business momentum.

The analyst writes that the company continued its momentum in the third quarter, posting a third consecutive top- and bottom-line beat for fiscal 2025. Comps, though still negative, improved 250 bps sequentially and represented the strongest since post-pandemic 2021, adds the analyst.

The analyst notes that CEO Michael Bender, after six months as interim, was named permanent CEO, providing continuity and leadership.

With a permanent CEO in place, Telsey expects KSS to maintain its recovery strategy, emphasizing improved product mix, stronger value messaging, and a seamless omnichannel experience.

While early signs are encouraging, regaining consumer trust will take time, with Sephora partnerships and store optimization central to stabilizing performance amid ongoing challenges, adds the analyst.

Kohl’s is well-positioned to capture holiday demand as it enters the holiday season with better inventory, stronger value assortments, expanded Sephora offerings, and broader promotions aimed at boosting traffic, the analyst notes.

Consequently, the analyst now projects fiscal 2025 net sales to decline 3.7% YoY to $14.81 billion (previously down 5.3% to $14.57 billion; consensus $14.60 billion).

The fiscal 2025 EPS is now expected to be $1.42 (prior $0.67; consensus $0.77), and fiscal 2026 EPS has been raised to $1.46 (prior $0.79; consensus $0.70).

Elevated Short Interest

The company has a short float of 29.29 million shares, representing 36.75% of its publicly traded float, indicating a very high level of short interest from investors wagering on further downside in the stock.

KSS Price Action: Kohl’s shares were up 6.07% at $23.78 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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