Business
Kohl’s shares jump 24% after big earnings beat
Kohl’s shares climbed 24% on Wednesday after the retailer topped Wall Street’s fiscal second-quarter earnings and revenue expectations, even as its sales declined and it looks for a new CEO.
The Wisconsin-based department store narrowed its full-year sales guidance to reflect the higher part of its previous range. It said it now expects net sales to decline by between 5% and 6%. It had previously anticipated sales would fall 5% to 7%.
It also revised its full-year earnings per share guidance. Kohl’s said it expects earnings to be in the range of 50 cents to 80 cents per share adjusted. It was unclear how that compared with a previous outlook of 10 cents to 60 cents per share, which was not adjusted.
On Kohl’s earnings call, interim CEO Michael Bender attributed the department store’s slower sales to the economy. He said lower- and middle-income customers are trading down to less-expensive brands.
Yet he also said Kohl’s is working to fix its mistakes. For example, he said, it is reintroducing the petite section, which it had phased out. It has added jewelry back to stores — a category it took away to make room for Sephora shops — and focused on carrying exclusive brands, especially ones that have lower price points. And the retailer is overhauling its discount strategy, so customers can use coupons for more of its brands.
Yet Bender stopped short of saying when Kohl’s will report sales growth again. He said all of its initiatives seek to win back customers who have stopped visiting Kohl’s or bought less there recently.
“We know that our route to long-term success for this business is to get back to growth,” he said. “And everything that we’ve talked about and everything you’ve heard from us certainly is directed at that intention.”
Shares closed on Wednesday at $16.17, up 24%. As of Wednesday’s close, shares are up about 14% so far this year, outpacing the approximately 10% gains of the S&P 500 during the same period.
Here’s how the retailer did for the three-month period that ended Aug. 2 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 56 cents adjusted vs. 29 cents expected
- Revenue: $3.35 billion vs. $3.32 billion expected
Kohl’s fiscal second-quarter net income was $153 million, or $1.35 per share, compared with $66 million, or 59 cents per share, in the year-ago period. Adjusting for one-time items, including the costs of store closures and gains from a legal settlement, earnings per share were 56 cents.
Net sales dropped from $3.53 billion in the year-ago quarter.
Kohl’s shares and sales have both been slumping — and the company’s leadership turmoil has tripped up its turnaround. Annual revenue has declined three years in a row. Its market value, which was just under $7 billion at the end of 2021, has fallen to roughly $1.5 billion. And the retailer has had three chief executives in as many years.
The company’s leadership changes began in late 2022 when Kohl’s CEO Michelle Gass left to become president and eventual CEO of Levi Strauss. Tom Kingsbury, a member of Kohl’s board and the former CEO of Burlington Stores, succeeded Gass. In November, Kohl’s said Kingsbury would step down after two years in the role and named Ashley Buchanan, the then-CEO of Michaels and a veteran of Walmart and Sam’s Club, as his successor.
Less than four months after he started as CEO, Kohl’s fired Buchanan after an investigation found he pushed for deals with a vendor owned by his girlfriend.
Kohl’s named Bender, a member of Kohl’s board since 2019, as its interim CEO.
There have been signs of potential financial concerns, too. Kohl’s recently changed its payment terms with vendors, a move that retailers typically make to delay payments for longer periods and conserve cash.
In a statement, Kohl’s did not specify the changes, but said the company “regularly reviews our work to ensure we are operating as effectively and efficiently as possible.” It said it notified some of its vendors about the updated payment terms in March.
Kohl’s continued to post sales declines in the second quarter. Comparable sales decreased 4.2% compared with the year-ago quarter. The industry metric takes out one-time factors like store openings and closures.
Yet Bender said the fiscal second quarter’s results reflect the company’s progress. He said the retailer reduced its inventory, lowered expenses and gained better traction with customers.
Inventory at the end of the quarter was $3 billion, a 5% drop from the previous year.
Sales trends improved throughout the quarter, he said on the company’s earnings call. It posted its weakest performance in May, improved in June and had its strongest month of the three-month period in July. He said July’s comparable sales were in line with the year-ago period.
Men’s and kid’s categories were the weakest of the quarter, as customers bought fewer spring clothing items like T-shirts and shorts. On the other hand, Kohl’s sales were stronger for dresses, kids’ footwear, home decor and its lower-priced exclusive brands.
Kohl’s is trying to find a better balance between selling national brands that customers recognize and offering merchandise that shoppers can only find at Kohl’s, Bender said. It debuted three exclusive home brands and will expand its FLX brand, an activewear line, to the kids’ category this fall at 300 stores and online. Its own brands tend to cost less, which appeals to value-driven shoppers, he said.
In the spring, Kohl’s completed the final rollout of Sephora shops to all of its stores. Bender said the beauty shops have delivered “exactly as intended” and drawn new and younger customers to Kohl’s stores.
Kohl’s has tapped two new executives to lead e-commerce, which is one of its struggling businesses, this summer. Arianne Parisi, former chief digital officer for JD Sports, is Kohl’s new chief digital officer.
It also hired Steven Dee as its new chief technology officer. Dee previously worked in technology operations for Rodan + Fields, Nike, Hayneedle and J.Crew. They will replace Siobhán McFeeney, who left the company in the spring.
Digital sales were stronger than store sales during the quarter, which Kohl’s attributed in part to adding back brands to coupon eligibility.
— CNBC’s Courtney Reagan contributed to this report.
Car-sharing firm Zipcar has confirmed it is stopping operations in the UK after launching a consultation late last year.
The move will hit the company’s roughly 650,000 drivers across the country.
On December 1, the US-based company told customers in the UK that it planned to suspend new bookings temporarily at the turn of the year.
The business, which had 71 UK employees at the end of 2024, launched a formal consultation with staff as a result.
On Friday, in a fresh email to customers, the business said it “can now confirm that Zipcar will cease operating in the UK”.
The company added: “In accordance with clause 7.5 of the member terms, please take this as your written notice that we will formally close your account in 30 days’ time.
“It’s not possible to make any new bookings with Zipcar UK at this time, but your account will remain open until February 16.”
It added that customers will be entitled to a pro-rated refund for any remaining periods on current plans or subscriptions, from the start of 2026.
Zipcar said this will be done automatically and will not require any action from users.
Accounts showed that the van and car hire firm saw losses deepen to £5.7 million in 2024 after a decrease in customer trips.
New Delhi: Good news for investors and market watchers! Even though February 1 falls on a Sunday this year, the Indian stock markets will remain open for trading on Budget Day. Both the BSE and NSE announced on January 16 that trading will take place as per normal market hours on February 1 for Budget 2026. This special arrangement ensures that investors can react to Budget announcements in real time, without waiting for the next trading session.
The NSE clarified the special trading arrangement in a circular, stating, “On account of the presentation of the Union Budget, members are requested to note that Exchange shall be conducting live trading session on February 01, 2026, as per the standard market timings (9:15 am-3:30 pm),” said NSE in a circular.
Union Budget 2026 to be presented on February 1 at 11 am
The Union Budget for 2026 will be presented at 11 am on Sunday, February 1, the Lok Sabha Speaker confirmed on January 12. In recent years, February 1 has become the fixed date for the annual Budget presentation, a trend that continued with the 2025 Budget as well. The upcoming Budget will also be a significant milestone for Finance Minister Nirmala Sitharaman, as it will be her ninth consecutive Union Budget, placing her among finance ministers with the longest uninterrupted Budget tenures.
Trading details for Budget Day explained
While most core market segments will remain open during regular trading hours on Budget Day, some services will stay shut. The BSE has clarified that the T+0 settlement session and the auction session meant for settlement defaults will not be operational. At the same time, the NSE confirmed that trading in capital markets and derivatives will continue as usual.
Stock market holiday list remains the same
The stock market holiday calendar for 2026 remains unchanged, with Indian exchanges observing 16 public holidays apart from weekends. The next scheduled market closure this month will be on January 26. In the first half of the year, markets will remain shut on key occasions such as Holi (March 3), Ram Navami (March 26), Mahavir Jayanti (March 31) and Good Friday (April 3). Trading will also be suspended on Ambedkar Jayanti (April 14), Maharashtra Day (May 1) and Bakri Id (May 28).
In the second half of the year, markets will close on Muharram (June 26), Ganesh Chaturthi (September 14), Gandhi Jayanti (October 2), Dussehra (October 20), Diwali Balipratipada (November 10) and Guru Nanak Jayanti (November 24). Christmas, on December 25, will be the final market holiday of 2026.
Last Updated:
While bulk deals may reflect emerging interest in a stock, block deals are usually pre-planned and involve large institutional investors
Market experts say tracking bulk and block deals can offer useful insights into the actions of large investors and institutions. (Representational Photo)
Investors tracking stock market movements often come across terms such as ‘bulk deal’ and ‘block deal’ in daily trading updates. At times, a sharp rise or fall in a stock price can be traced back to these large transactions. Understanding what these deals mean, how they differ, and why they matter can help investors make better sense of market activity.
Bulk Deal
A bulk deal occurs when an investor or institution buys or sells 0.5% or more of a company’s total equity shares in a single trading day. Such transactions take place during normal market hours and are disclosed by the stock exchanges after the market closes.
Bulk deals can have an immediate impact on a stock’s price, as heavy buying or selling often signals strong interest or exit by a large investor. Retail investors sometimes view bulk purchases by institutional players as a vote of confidence in the company.
Block Deal
A block deal is executed through a special trading window provided by the stock exchanges. To qualify as a block deal, the transaction must involve at least 5 lakh shares or be valued at more than Rs 5 crore. These deals are carried out during a specific time slot known as the block deal window, and both the buyer and seller are identified beforehand.
The main objective is to facilitate large transactions without causing excessive volatility in the open market. Unlike bulk deals, block deals are reported to the exchanges immediately.
Differences Between Bulk and Block Deals
Bulk deals are executed during regular trading hours and typically involve relatively smaller quantities compared to block deals. They are disclosed at the end of the trading session. Block deals, on the other hand, are meant for very large transactions, take place in a designated time window, and are reported in real time.
While bulk deals may reflect emerging interest in a stock, block deals are usually pre-planned and involve large institutional investors.
Types of Deals in the Stock Market
There are broadly four types of transactions in the equity market. Regular trading deals involve routine buying and selling by investors on the exchange. Bulk deals refer to large trades crossing the 0.5% threshold of a company’s equity in a day. Block deals are high-value or high-volume transactions conducted through a special window.
Off-market deals involve the transfer of shares outside the exchange platform, such as inter-promoter transfers or strategic stake sales.
What Should Investors Keep in Mind?
Market experts say tracking bulk and block deals can offer useful insights into the actions of large investors and institutions. However, they caution against making investment decisions based solely on these transactions. Investors are advised to also consider a company’s fundamentals, financial performance, management quality and long-term growth prospects.
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January 16, 2026, 20:26 IST
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