Latest news with #Kohl'sCorp
Business Times
a day ago
- Business
- Business Times
Short sellers rack up US$25 billion loss on riskiest US stocks
IT HAS been a brutal month for traders shorting the riskiest US stocks, and as animal spirits imbue retail investors with boundless confidence, strategists expect the misery to continue for bears. As of Thursday (Jul 24), investors had lost US$2.5 billion in the month, betting against the 50 US-listed stocks with the highest short interest, according to data from S3 Partners. Doubting the hype in those firms, which include meme-stock darling Kohl's Corp, produced four times greater losses than the average short in the US market, as individual traders have pushed into speculative names. This week poses a big test for the risk-on mood, with the Aug 1 deadline for US trade deals looming, one of a slew of key events. However, strategists say the meme-stock frenzy likely has room to run. Data from Vanda Research Corp shows that net retail buying of companies such as Opendoor Technologies Inc and Krispy Kreme Inc has continued to trend higher. Trading frequency has risen as well, said Marco Iachini, senior vice-president of research at Vanda Research. 'I'm not seeing any signs' that the craze is fading, he said. Driving home how profitable a stretch it has been for investors betting on speculative corners of the market, a Goldman Sachs Group Inc basket of 50 stocks with the highest short interest in the Russell 3000 Index just posted a record ninth straight week of gains. It has climbed 33 per cent in that time, and clobbered both the Russell 3000 and the S&P 500 Index's returns of 10 per cent each. That Goldman basket of stocks is up 15 per cent this month. Justin Walters, co-founder at Bespoke Investment Group, wrote in a Thursday note: 'July has been a banner month for investors long on the most heavily shorted stocks (and brutal for those short them).' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Michael O'Rourke, chief market strategist at Jonestrading Institutional Services, said the run of outperformance by the most-shorted stocks in the market could signal that the current risk-on sentiment in the market is short-lived. 'I actually don't think this will be anywhere near as long as in 2021,' he said. The breadth of this meme-stock rally stands in sharp contrast to the case in 2021, when traders mainly piled into GameStop Corp and AMC Entertainment Holdings, he said. Other potential hurdles for equities bulls are on the calendar this week: A Federal Reserve monetary-policy decision, earnings results from a quartet of 'Magnificent Seven' companies and Friday's monthly jobs report. Plus, trading desks at firms, including Goldman, last week urged clients to buy cheap hedges against potential losses. However, amateur traders may drag institutional money into the speculative rally and keep it going, said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners. Once there are 'hedge fund holdings on both the long and short sides of these names, coupled with retail buying pressure, they tend to be more volatile and produce higher returns', he said. That produces more pain for short sellers, he added. Retail investors are 'squeezing hedge funds and then forcing this upward move', Vanda's Iachini said. BLOOMBERG
Mint
22-07-2025
- Business
- Mint
Kohl's shares surge over 100% amid social media fueled frenzy. Here's all you need to know
American retail chain company Kohl's Corp. shares more than doubled on Tuesday, making it the latest meme stock, as retail traders on social media heavily mentioned it. Advertisement Shares of the retailer surged as much as 105% during early trading, marking the largest one-day increase on record and returning the stock to levels last seen nearly a year ago. The stock was briefly halted due to volatility after trimming its gains and was approximately 27 per cent higher at 9:52 a.m. in New York, according to a report by Bloomberg News. Also Read | Stocks to buy under ₹100: Experts recommend two shares to buy tomorrow 'It's all social media chatter. Remember that a highlight of the meme stock era was a dose of nostalgia for companies like GameStop and AMC,' Steve Sosnick of Interactive Brokers told Bloomberg. 'Social media chatter can become self-fulfilling," he added. Short interest, which is the amount of shares borrowed to short, accounts for approximately 48 per cent of Kohl's float, the report said citing data from S3 Partners LLC. This figure way above than the levels reported by companies such as Apple Inc. and Tesla Inc., which have less than 3 per cent of their float borrowed to short. GameStop Corp, a prominent entity of the meme stock era, has about 20% short interest. Advertisement Kohl's stock rose steadily from an early April low, mainly due to US President Donald Trump's escalation of tariffs on Liberation Day, gaining more than 60 per cent by yesterday's close. However, shares were still over 25 per cent lower through Monday as the retailer faced a sales decline and dealt with the repercussions of firing its chief executive officer, Ashley Buchanan, just months after he took the role. Also Read | European shares dip as mixed earnings, trade anxiety weigh Notably, the Dow Jones, Nasdaq Composite, and S&P 500 opened flat during the market session on Tuesday without significant movement as US investors concentrated on President Donald Trump's trade agreements with global nations and corporate earnings.
Yahoo
05-06-2025
- Business
- Yahoo
Where Will Kohl's Stock Be in 1 Year?
Kohl's first-quarter earnings showed continued sales weakness and a net loss. The struggling retailer is attempting to improve its cash position and stabilize growth. The stock will likely remain volatile until tangible signs of improvement emerge. 10 stocks we like better than Kohl's › Kohl's (NYSE: KSS) is navigating what may be the most difficult period in its 63-year history. Shares of the department store giant have plummeted 42% year to date, amid falling sales -- testing the retailer's relevance. Despite these challenges, the company remains profitable and is pushing forward with a turnaround strategy that may spark a stock price rebound. Does the recent weakness make Kohl's a clearance-rack bargain to buy now, or is keeping it in layaway the more prudent move? Let's explore where the stock might be in a year. Kohl's is recognized for its unique blend of private-label and major fashion brands at affordable prices. Even as the model commands a loyal customer following, the company has been caught in a shifting consumer spending environment, with shoppers facing stretched discretionary spending budgets. The retailer now appears to be struggling to maintain its market share against intense competition from other stores and e-commerce players. This year, the latest headwind is the new tariffs on imported goods implemented by the Trump administration, which have forced Kohl's to adjust its inventory management and diversify its supply chain to mitigate the impact. The company has also been marred by corporate dysfunction, firing its former CEO Ashley Buchanan in early May following an internal investigation. In the first quarter (ended May 3), revenue fell by 4.1% year over year, reflecting a 3.9% decline in comparable sales, with its digital business underperforming. If there is a silver lining to the results, efforts to control costs and streamline operations allowed the net loss of $0.13 per share to narrow compared to a $0.24 loss in the prior-year quarter. For the full year, Kohl's expects further sales weakness, targeting a decline in annual net sales between 5% and 7%. While that estimate at the midpoint, if confirmed, would mark a modest improvement compared to the 7.2% drop in 2024, the projected earnings per share (EPS) for 2025 of between $0.10 and $0.60 is below the $0.98 result last year. On this point, it's notable that even with ongoing difficulties, Kohl's is expected to be profitable this year. Ultimately, the new interim CEO, Michael Bender, has a lot of work ahead to repair the company's credibility and fix the many broken parts of this once industry-leading retailer. Metric 2024 2025 Comparable sales growth (YOY) (6.5%) (4%) to (6%) Net sales growth (YOY) (7.2%) (5%) to (7%) Operating margin 2.7% 2.2% to 2.6% EPS $0.98 $0.10 to $0.60 Source: Kohl's Corp. YOY = year over year. Kohl's is implementing a comprehensive plan to stabilize its finances and improve its foundation to kick-start growth over the long run. To achieve this, the company is focused on reducing debt and rebuilding its cash position. A key step was the dividend cut announced earlier this year, reducing the quarterly payment to $0.125 per share from the previous $0.50 per-share rate. The new dividend still offers investors a compelling 6.1% yield, and it will also save the company approximately $164 million in cash annually, which will help it address its current $2.1 billion in balance sheet debt. Additionally, Kohl's is revamping its shopping experience to attract customers back to its stores and website. A significant store refresh initiative covering 613 locations this year should enhance the omnichannel experience, intended to make shopping more engaging and seamless. The company is also adjusting its product mix to better meet customer needs, with a focus on high-value categories like jewelry, which has been a rare bright spot with positive growth. Furthermore, Kohl's is expanding its partnership with beauty products specialist Sephora, completing a rollout of shop-in-shops across its 1,100 locations and showing promising results. By refining its marketing messaging and highlighting its core strengths, Kohl's aims to reestablish its brand appeal and get back on track for sustainably profitable growth. In my view, it's too early to buy Kohl's stock with conviction, as its numerous uncertainties add to the risk of further downside in a scenario where growth continues to disappoint. Beyond Kohl's temptingly high-yielding dividend, I believe the prudent move is for investors to avoid it for now, as I predict the stock will remain volatile and could be trading at a lower price this time next year. Before you buy stock in Kohl's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Kohl's wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Dan Victor has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Where Will Kohl's Stock Be in 1 Year? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Kohl's Shares Up on Better-Than-Expected EPS, Maintains FY Guidance
By Karen Roman Kohl's Corp. (NYSE: KSS) shares rose 4% in early trade Thursday after the company said its first quarter loss narrowed to $15 million, or 13 cents a share, surpassing analysts' expectations of 22 cents a share. Kohl's earnings were above its previous expectations issued in early May, when it also reported the appointment of Michael Bender as interim CEO. The company confirmed its full-year outlook with sales expected to decline 5% to 7% and EPS projected between $0.10 and $0.60, it said in a statement. 'Our first quarter performance was ahead of our expectations and the actions we are taking are starting to make progress with early signs of a positive impact,' said Bender. 'Our team is focused and motivated to deliver great products, great value, and a great shopping experience to our customers.' Contact: editor@ Sign in to access your portfolio
San Francisco Chronicle
29-05-2025
- Business
- San Francisco Chronicle
Kohl's: Fiscal Q1 Earnings Snapshot
MENOMONEE FALLS, Wis. (AP) — MENOMONEE FALLS, Wis. (AP) — Kohl's Corp. (KSS) on Thursday reported a loss of $15 million in its fiscal first quarter. The Menomonee Falls, Wisconsin-based company said it had a loss of 13 cents per share. The results surpassed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for a loss of 22 cents per share. The department store operator posted revenue of $3.23 billion in the period, also beating Street forecasts. Three analysts surveyed by Zacks expected $3.2 billion. _____
