Kohl's Stock To $30?

Core Insights - Kohl's stock has surged nearly 24% in a single day due to stronger-than-expected earnings and an improved profit forecast, despite ongoing challenges such as declining sales and leadership instability [2][6][8] - The stock has increased by 10% year to date, raising questions about its potential for further growth, contingent on successful turnaround initiatives [3][7] Financial Performance - Kohl's gross margin rose to nearly 40% in Q2 2025, an increase of 28 basis points year-over-year, while SG&A expenses decreased by over 4% [6] - The company has raised its full-year EPS guidance to $0.50–$0.80, up from a previous estimate of $0.10–$0.60, indicating management's confidence in the sustainability of the turnaround [6] Growth Opportunities - The partnership with Sephora is attracting younger consumers and boosting higher-margin sectors, while store redesigns are aimed at enhancing impulse purchases and private-label product visibility [6][7] - Kohl's is focusing on categories like home goods and children's wear for additional growth potential [6] Challenges - Same-store sales fell by 4.2% in Q2, marking another quarter of contraction, which poses a significant concern for the company's turnaround efforts [6] - Analysts suggest Kohl's is experiencing a brand identity crisis, being caught between discount retailers and high-end brands, making it vulnerable to price wars [6][8] - Leadership instability, with the company having its fifth CEO in three years, complicates strategic execution and increases execution risk [6][8]