Few large retailers have been through the wringer as much as Kohl’s over the past few years. Most dramatically, in April, it fired its CEO for trying to steer company business to his girlfriend, precipitating its third CEO transition in as many years. But more important, Kohl’s has been losing sales for years, with one turnaround attempt after another falling short of restoring a once-beloved retailer.
So on Wednesday, shares shot up 20% when Kohl’s had a rare piece of good news to share with Wall Street: a much better than expected adjusted profit, thanks to cost discipline and leaner inventory, that led it to raise its full-year forecast. Clearly investors will take victories where they can find them, because victories have been few and far between for the chain. (Shares have recovered only slightly from 30-year lows hit this spring.)
