- The stock price of Kohl’s Corporation (NYSE: KSS) has increased 24.91% over the last 5 trading days. This is why the stock price has been increasing.
Over the last 5 trading days, the stock price of Kohl’s Corporation (NYSE: KSS) has increased by 24.91%. One of the biggest triggers for the stock price increase includes details about the company’s Q1 earnings preview, the actual Q1 results, and the subsequent price targets.
Several days ago, Fool.com published an earnings preview for Kohl’s. Fool.com pointed out that the company reported an adjusted net loss of $495 million and revenue fell 40% year-over-year in the first quarter. Then Kohl’s quickly pivoted during the COVID-19 pandemic and rollout curbside pickup in early April so it was able to reduce the revenue fall for the second quarter to 23%. Kohl’s ramped up on the types of items that customers were most likely to want to buy right now, accounting for the slowdown in back-to-school sales so analysts were expecting revenue to fall about 12% in the most recent quarter. And it is expected that Kohl’s could return to profitability in the fourth quarter.
Kohl’s had reported its actual earnings on Tuesday, November 17 and they beat analyst expectations. The revenue for the fiscal third quarter was $4 billion, which is above the $3.9 billion expected. And the company reported an adjusted net income of $2 million ($0.01) while analysts were expecting about $0.40 to $0.45 per share in losses.
“Our third-quarter results exceeded our expectations with significant sequential sales and profitability improvement,” said Kohl’s CEO Michelle Gass in a statement. “Digital sales growth remained strong and our actions to improve our gross margin showed great progress.”
The stock price on November 17 increased over 10% that day alone.
Price Target Increases
On November 18, a number of analysts increased their price targets for Kohl’s stock. Citigroup increased their price target from $21 to $33. Bank of America increased their price target for Kohl’s from $30 to $36. Credit Suisse Group increased the price target of Kohl’s from $23 to $30. And Deutsche Bank increased its price target from $19 to $28.