Kohl’s offered a more optimistic view for full-year sales, a sign that the troubled retailer’s turnaround efforts are gaining traction https://t.co/CwVeQjnsu5 ...

Exhibit 99.1 Kohl's Reports Second Quarter Fiscal 2025 Financial Results MENOMONEE FALLS, Wis.—(BUSINESS WIRE)—August 27, 2025—Kohl's Corporation (NYSE:KSS) today reported results for the second quarter ended August 2, 2025. Michael Bender, Kohl's Interim Chief Executive Officer, said "Kohl's second quarter performance is a testament to the progress we are making against our 2025 initiatives. This resulted in sales performance that came in ahead of our expectations. While it is clear that these initiatives ...

The upcoming report from Kohl's (KSS) is expected to reveal quarterly earnings of $0.33 per share, indicating a decline of 44.1% compared to the year-ago period. Analysts forecast revenues of $3.48 billion, representing a decline of 6.9% year over year. The consensus EPS estimate for the quarter has undergone an upward revision of 2.9% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. B ...

Core Viewpoint - Kohl's Corporation is expected to report declines in both revenue and earnings for the second quarter of fiscal 2025, with sales estimated at $3.48 billion, reflecting a 6.9% decrease year-over-year, and earnings per share projected at 33 cents, down 44.1% from the previous year [1]. Group 1: Earnings Performance - The Zacks Consensus Estimate for Kohl's quarterly sales is currently pegged at $3.48 billion, indicating a 6.9% decrease from the year-ago quarter [1]. - The consensus mark for earnings for the fiscal second quarter has remained stable at 33 cents a share, reflecting a year-over-year plunge of 44.1% [1]. - Kohl's has delivered an average earnings surprise of 18.8% over the trailing four quarters, with a notable earnings surprise of 40.9% in the last reported fiscal quarter [2]. Group 2: Factors Impacting Performance - Ongoing macroeconomic uncertainty and a cautious consumer environment are significant challenges for Kohl's, particularly affecting its digital business and home category sales [3]. - The company is facing external headwinds such as shifting consumer behavior and unpredictable tariff developments, leading to a projected comparable sales decline of 5.6% in the upcoming quarter [4]. - Despite these challenges, Kohl's has made progress in underpenetrated categories like home decor, gifting, and baby products, which may provide some cushion in the fiscal second quarter [5]. Group 3: Strategic Initiatives - Kohl's is focusing on strategic growth initiatives, including enhancing customer experience, optimizing inventory, and effective cost management, which is expected to result in a 6.1% reduction in SG&A costs for the second quarter [6]. - The strategic partnership with Sephora is anticipated to have a positive impact on performance in the upcoming quarter [5]. Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for Kohl's, as it has an Earnings ESP of -20.17% and a Zacks Rank of 3, indicating a neutral outlook [7].

After winning the favor of retail investors, Kohl's has a chance to raise some much-needed cash, says @andreafelsted (via @opinion) https://t.co/tNWlyCEqSQ ...

Meme Stock Phenomenon - Meme stocks experience volatile price swings unrelated to business fundamentals, often involving heavily shorted, cheap stocks [4] - Retail investors leverage social media to drive up stock prices, challenging institutional investors [3][8] - GameStop's surge, fueled by Reddit users, demonstrated the potential for massive gains and losses, impacting hedge funds [9][10] - Kohl's, like other recognizable brands, became a target for meme stock activity due to its household name and high short interest [11][12] Kohl's Business Performance - Kohl's stock experienced a 100% surge due to meme stock activity, despite underlying business performance being just "okay" [1] - From July 2021 to July 2025, Kohl's stock price decreased by approximately 85% [17] - Between 2019 and 2024, beauty and accessory sales increased by 38% due to the Sephora partnership, but overall sales decreased by 18.5%, and excluding beauty, sales decreased by around 26% [19] - Kohl's has lost 1.3 million customers over five years to competitors [17] Risks and Outlook - Short selling involves borrowing and selling stock, hoping to buy it back at a lower price, but losses can be exponential if the price rises [5][6] - Wild stock swings can distract from Kohl's need to focus on day-to-day operations [21] - While not in immediate danger of bankruptcy, Kohl's faces challenges and needs to experiment with different strategies under an interim CEO [18][19][20] - Predicting the next meme stock is difficult, but companies with household names and high short interest are potential candidates [14][16]

Group 1 - The resurgence of meme stocks has created a dilemma for professional investors, weighing the option to capitalize on retail trading enthusiasm against the risk of a market bubble warning signal [1] - Stocks like Opendoor Technologies Inc. and Kohl's Corporation have seen significant price movements, with major indices like the S&P 500 and Nasdaq 100 reaching historical highs since early April [1] - FINRA data indicates that margin debt for purchasing stocks has surpassed levels seen during the tech bubble, reaching an all-time high [1] Group 2 - Signs of market fatigue are emerging, as the latest meme stock rally has shown a quick loss of momentum, with Bitcoin also retreating from its historical peak [3] - Some Wall Street trading desks are advising clients to purchase insurance at discounted prices to guard against potential losses, as current market valuations appear significantly high [3] - The S&P 500's expected price-to-earnings ratio is nearing 23 times, well above the 10-year average of approximately 18 times, indicating a substantial disconnect from fundamentals [3] Group 3 - The current speculative frenzy is reminiscent of the January 2021 meme stock surge, driven by retail investors using government stimulus checks and zero-commission trading platforms [7] - The trading volume for Opendoor reached 1.8 billion shares on its busiest day, accounting for nearly 10% of total U.S. stock market volume, highlighting the amplified speculative momentum [7] - The macroeconomic backdrop is different this time, with rising interest rates and expectations of potential Federal Reserve rate cuts later this year, which could further support the stock market [7] Group 4 - Current market conditions are still digesting the impacts of tariffs imposed by the Trump administration, but most trade agreements have yielded better-than-expected results since early April [7] - Inflation appears to be under control, and earnings growth remains stable, which could provide a foundation for continued market performance [7] - If the Federal Reserve does not cut rates this year or if tariffs and inflation undermine other positive factors, the market may face a reassessment [7]

Core Viewpoint - Kohl's stock experienced a significant surge due to meme-stock trading and a short squeeze, with a 33.5% increase over the last week, while the S&P 500 rose only 1.5% [1][4]. Group 1: Stock Performance - Kohl's share price is still down approximately 9% in 2025 and 56% over the last three years despite the recent rally [2]. - The stock's surge was driven by its popularity among meme-stock traders, leading to a moderate short squeeze as short sellers were forced to buy back shares [4]. Group 2: Business Outlook - The company's performance outlook remains challenging, with guidance indicating a sales decline of 5% to 7% for the year and same-store sales projected to fall between 4% and 6% [5]. - The midpoint of Kohl's earnings target suggests a potential annual decline in profitability of around 64% [5]. Group 3: Investment Sentiment - Some investors are speculating that Kohl's commercial real estate holdings may be undervalued, although this investment thesis carries risks [6].

Core Viewpoint - The resurgence of meme stocks is driven by retail traders, reminiscent of the 2021 craze, with potential for even larger rallies as they mobilize online and disregard Wall Street skepticism [1][6]. Group 1: Retailer Performance - Retailers such as Kohl's, GoPro, Wendy's, and Krispy Kreme experienced significant stock rallies, with Kohl's up 32%, GoPro up 66%, and Krispy Kreme up 41% over the week [6]. - American Eagle Outfitters saw a 10% increase in shares after actress Sydney Sweeney was announced as the face of its marketing campaign [3]. Group 2: Market Dynamics - The current market environment, characterized by high trading volumes and speculative behavior, is conducive to meme stock rallies, similar to the conditions during the Covid era [6][10]. - The meme-stock phenomenon is often detached from traditional economic fundamentals, with investors supporting brands for emotional or ideological reasons rather than financial metrics [7][10]. Group 3: Community Influence - The wallstreetbets forum empowers retail traders to share research and ideas, leading to a decentralization of financial analysis and investment power [5]. - The community's influence is evident as retail traders push stock prices significantly, demonstrating the power of collective action [5]. Group 4: Cultural Impact - The meme culture surrounding stocks, such as Wendy's, illustrates how humor and social media can drive investment decisions, often independent of market fundamentals [8][10]. - The evolving landscape of finance, including the rise of blockchain and AI trading, reflects a shift in how retail traders engage with the market [4].

Core Viewpoint - The DORK meme stocks, representing a new wave of retail speculation, have shown significant volatility, with initial surges followed by sharp declines, indicating a speculative bubble rather than a reflection of strong fundamentals [1][2]. Group 1: DORK Meme Stocks Performance - DORK stocks, including Opendoor, Kohl's, Krispy Kreme, and GoPro, experienced dramatic price movements, with Opendoor rising 43% and GoPro soaring 73% before facing declines of over 20% and 14% respectively [1][2]. - Retail investors have shown a strong speculative interest, with net purchases of $155.3 billion in stocks in the first half of the year, the highest in at least a decade [1]. Group 2: Financial Performance of DORK Stocks - The financial performance of DORK stocks is generally weak, with Opendoor reporting a 26% year-over-year revenue decline and a net loss of $392 million, while GoPro saw a 20% revenue drop and a net loss of $432 million [2]. - Analysts describe these companies as fundamentally impaired, indicating that the current trading behavior is driven more by speculation than by financial health [2]. Group 3: Market Dynamics and Retail Investor Behavior - The DORK phenomenon marks a shift in meme stocks from a rebellious symbol to a regular market element, with the current trading activity lasting only one to two days compared to previous trends [3]. - The options market's role in this recent surge is less pronounced, with only 21% of the top 100 S&P 500 stocks showing bullish options activity, compared to over half during the 2021 meme stock craze [3]. Group 4: Diversification of Speculative Investments - Retail speculative funds are diversifying into various risk assets beyond meme stocks, with significant increases in high-yield bonds and cryptocurrency investments, reflecting a shift in market sentiment [4]. - The popularity of platforms for sports betting and complex stock betting has contributed to a more widespread speculative environment, reducing the focus on individual meme stocks [4].