How Kohl's lost its way — and is trying to become relevant again
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- Kohl's stock lost nearly 70% over the past five years but has climbed more than 130% in the past year as turnaround efforts gain traction under new leadership.
- CEO Michael Bender, who took over in late 2025, told CNBC the retailer "stopped listening to the customer" by cutting categories like petites and jewelry and leaning into off-price retail instead of proprietary brands.
- Kohl's posted its best comparable sales growth in four years in its most recent quarterly report, with revenue of $3 billion beating Wall Street estimates; the stock spiked 20% following the release.
- Sephora shop-in-shops, designed to draw Gen Z shoppers into stores, "underperformed" in the most recent quarter with a low-single-digit percentage decline, per Bender, despite historically delivering billions in sales.
- TD Cowen analysts rated Kohl's at "hold" in a June note, calling it a "'show-me' story" even while acknowledging the company is "making the right strategic decisions" on simplified promotions and rebalanced inventory.
- Walmart, T.J. Maxx, and Amazon captured market share that Kohl's ceded as the retailer drifted from its core identity, according to analysts covering the company.
Why it matters: Kohl's has won back investor confidence — shares up 130% over the past year and spiked 20% post-earnings — but TD Cowen's "hold" rating signals skepticism remains. Sephora's recent underperformance and pressure on the "core credit consumer" flagged by analysts show visible cracks in the early turnaround.
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