Core Insights - Kohl's Corp. reported third-quarter results that exceeded expectations, prompting an increase in full-year guidance [1][2] Financial Performance - Net sales for the third quarter decreased by 2.8% year-over-year to $3.4 billion, down from $3.5 billion, with comparable sales declining by 1.7% [3] - Net income was $8 million, or 7 cents per diluted share, compared to $22 million, or 20 cents per diluted share, in the prior year [3] - Operating income fell to $73 million from $98 million in the previous year, representing 2.1% of total revenue, a decrease of 61 basis points [4] - Adjusted operating income was $77 million, or 2.2% of total revenue, down from $98 million in the prior year [4] - Gross margin increased to 39.6%, up by 51 basis points [11] - Cash flow from operating activities was $124 million, down from $195 million a year earlier [11] Strategic Initiatives - The company is focusing on improving its product mix, particularly in proprietary brands and categories such as fine jewelry and home decor [6][8] - CEO Michael Bender emphasized the importance of customer feedback in shaping product offerings and store experiences [6] - Proprietary brands saw a collective growth of 1% last quarter, with investments in key brands like Lauren Conrad and Simply Vera Vera Wang [7] Guidance Update - Kohl's raised its full-year guidance, now expecting net sales to decline by 3.5% to 4% and comparable sales to decline by 2.5% to 3% [12] - Adjusted operating margin is now projected to be between 3.1% and 3.2%, an increase from the previous range of 2.5% to 2.7% [13] - Adjusted diluted earnings per share are now expected to be between $1.25 and $1.45, up from the previous range of 50 cents to 80 cents [13] Company Overview - Kohl's operates over 1,100 stores across 49 states, along with its online platform and mobile app [14]

Company Overview - Kohl's shares experienced a significant rally of 37.6% in the last trading session, closing at $14.34, with trading volume notably higher than usual. This follows a 28.6% gain over the past four weeks [1][2] - The company's success is attributed to effective inventory and expense management, focusing on growth categories such as Sephora, home decor, and impulse items, along with enhanced customer experience initiatives [2] Earnings Expectations - Kohl's is expected to report quarterly earnings of $0.33 per share, reflecting a year-over-year decline of 44.1%. Revenue is anticipated to be $3.48 billion, down 6.7% from the same quarter last year [3] - The consensus EPS estimate for Kohl's has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Kohl's operates within the Zacks Retail - Regional Department Stores industry, where Dillard's, another competitor, closed the last trading session up 4.3% at $484.52, with a 15.2% return over the past month [4] - Dillard's has a consensus EPS estimate of $3.47 for its upcoming report, which represents a 24.4% decline from the previous year, and currently holds a Zacks Rank of 2 (Buy) [5]