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.
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Trump administration in advanced talks for a rescue package for Spirit Airlines, source says
A Spirit commercial airliner prepares to land at San Diego International Airport in San Diego, California, U.S., January 18, 2024.
Mike Blake | Reuters
The Trump administration is in advanced talks for a financing package for Spirit Airlines as the carrier is facing the risk of a liquidation, according to a person familiar with the matter.
Spirit had been facing a potentially imminent liquidation, people familiar with the matter told CNBC last week, speaking on the condition of anonymity to discuss matters that had not yet been made public. The Dania Beach, Florida-based carrier in August filed for its second Chapter 11 bankruptcy in less than a year, after it struggled to increase revenue to cover rising costs.
President Donald Trump hinted at potential government aid on Tuesday, telling CNBC’s “Squawk Box“, “Spirit’s in trouble, and I’d love somebody to buy Spirit. It’s 14,000 jobs, and maybe the federal government should help that one out.”
The White House didn’t immediately comment.
“We are hopeful that the government will recognize the needs for emergency funds especially in the current economic environment,” a spokesperson for the Associated of Flight Attendants-CWA, which represents Spirit’s cabin crews, said in a statement. “The last thing our economy needs is tens of thousands more people out of work and the last thing the travelling public needs is fewer choices in air travel.”
The terms of the financing deal weren’t immediately known. The Wall Street Journal earlier reported that the talks were in an advanced stage.
The U.S. airline industry accepted more than $50 billion in taxpayer aid to weather the Covid-19 pandemic, which is still its biggest-ever crisis, but those funds weren’t handed to one specific airline. Some of the aid gave the U.S. government stock warrants for airlines.
Airlines also received a government bailout following the Sept. 11, 2001, terrorist attacks, but that money was also for more than one company. The U.S. in 2008-2009 also bailed out the auto industry during the financial crisis and took stakes in manufacturers.
The Trump administration has taken equity stakes in some companies it deemed critical to national security like Intel and USA RareEarth, though Spirit stands out as it is in bankruptcy.
In February, Spirit said it expected to exit bankruptcy in late spring or early summer, telling a U.S. court that it would shrink and focus its planes on high-demand routes and travel periods. Pilot and flight attendant unions had also made concessions, including going on furlough in recent months, in a bid to help Spirit survive.
But jet fuel prices have nearly doubled in some parts of the U.S. since then, further adding to challenges for Spirit and the rest of the airline industry.
As a low-fare airline that also faces competition from larger carriers with their own no-frills, basic economy offerings, it has grown harder for Spirit to cover expenses. Spirit had introduced extra-legroom seats and other premium options to try to cater to higher-spending customers.
Business
Iran war: Trump sanctions waiver or not – why India continues to buy Russian oil – The Times of India
In early March, India was staring at a possible crude oil supply problem – the US-Iran war caused the Strait of Hormuz through which 20% of global crude transits to be effectively closed. To rescue came Russian crude oil! In fact, Russian crude has become a crucial support for India’s oil imports both in April and March. The import volumes are actually touching highs seen when India was bagging Russian crude at a huge discount.US President Donald Trump sanctioned two Russian oil majors towards the end of last year. This made it financially unviable for Indian refiners to continue to buy Russian crude at the same level as before, though flows of unsanctioned oil continued.However, in March, with the US sanctions waiver in effect, India has aggressively procured Russian crude, picking up millions of barrels. After the Russia-Ukraine war, Russian crude has maintained its position as the largest supplier of crude oil to India. Through Western sanctions, US President Donald Trump’s pressure and sanctions on Russian oil majors, crude from Russia has continued to flow to India, though the levels have varied.
However, experts believe that once the situation in the Middle East normalizes, India will go back to buying crude from Gulf countries, and Russia’s percentage in India’s oil imports will come down.
US sanctions waiver & India’s aggressive buying
India has never officially said that it will stop buying Russian crude, and even when levels dropped after sanctions, Russia was still the biggest contributor. However, the Donald Trump administration’s decision to waive sanctions on Russian crude, and extend that waiver to May has allowed Indian refiners to step up procurement without any worries.According to the latest report from Centre for Research on Energy and Clean Air (CREA)’s analysis, while India’s total crude imports recorded a 4% reduction in March, Russian imports doubled.
“The biggest shift was in state-owned refineries’ imports from Russia, which saw a massive 148% month-on-month increase. Their imports were in fact 72% higher than March 2025, presumably due to Russian barrels being more available in the spot market, which serves as the primary source of imports for them,” says CREA.Russia’s share of India’s crude oil imports in March 2026 placed the month at the upper end of historical highs, closely mirroring peak levels seen in 2023, when Western sanctions redirected Russian oil flows toward Asia and made Moscow India’s single largest supplier.Sourav Mitra, Partner – Oil and Gas, Grant Thornton Bharat explains the emergence of Russia as a dominant supplier of crude for India.Russia’s share surged sharply in the months following the Ukraine war, peaking during several months in mid‑2023, particularly around May–June, when imports rose to about 1.9-2.0 million barrels per day and accounted for nearly 42-45% of India’s crude basket, displacing Iraq and Saudi Arabia. That dominance persisted through much of 2023, with average shares close to 40% between April and September, before easing in 2024 and early 2025 as price discounts narrowed, compliance costs increased and refiners partially rebalanced toward Middle Eastern grades.“Against this backdrop, the rebound seen in March 2026 effectively matches the 2023 peak, although the underlying drivers differed, with the latest spike largely reflecting supply disruptions in West Asia that curtailed Gulf inflows and compelled refiners to rely more heavily on available Russian cargoes. We expect that while March marks a return to near‑record dependence on Russian crude, such elevated levels are unlikely to persist once Middle Eastern supply chains stabilize,” Mitra tells TOI.
No more discounts! India paying a premium for Russian crude
What stands out is the fact that when India stepped up its procurement of Russian crude after the Ukraine war began, the oil was available at very steep discounts. This was due to European sanctions that made Russian crude available at a much lower rate than Brent. Come 2026, with oil supplies via Hormuz disrupted and global crude oil prices rising, Russia is now selling at a premium!According to Sourav Mitra of Grant Thornton Bharat, Indian refiners are currently paying a premium of about $4-6 per barrel over the Brent benchmark for Russian crude. These are some of the highest delivered premiums on Russian crude since Russia began diverting large volumes of crude to Asia after the Ukraine war, he tells TOI. “This shift is attributed to intense competition for prompt Russian cargoes as disruptions to Middle Eastern supply routes pushed refiners to prioritise assured deliveries over price. The premium contrasts starkly with February 2026, when Indian buyers were still securing Russian crude at discounts of roughly $12–$15 per barrel, shortly before conditions deteriorated in the Strait of Hormuz,” he elaborates.In fact, the turnaround is even more pronounced compared with 2022-23, when Russian crude frequently traded $20-$30 below Brent. The price inversion was reinforced by the US sanctions waiver issued in early March 2026 and effectively released millions of barrels into the market, strengthening sellers’ leverage. “As a result, India has shifted from discount‑driven buying to security‑led procurement, paying a premium to ensure supply continuity while Gulf flows remain disrupted,” he adds.
Why India continues to buy Russian crude
Russian oil is not going out of India’s crude imports anytime soon, experts say.However, Ivan Mathews, Head of APAC Analysis at Vortexa expects Russian crude imports to decline month-on-month in April. “Discounts on Russian crude were less competitive due to increased demand during the sanctions waiver period, which has since been extended to 16 May. This will lead to lower marginal imports for economics-driven refineries in India. Additionally, reduced crude loadings from Russia will decrease the availability of Russian barrels for imports in the coming weeks,” Mathews tells TOI.
Mitra of Grant Thornton Bharat says that Russian crude is now well integrated into India’s refining system and serves as a reliable fallback when alternative supplies tighten. Russia is likely to remain an important supplier through 2026 even as its share moderates from March’s highs and Middle Eastern flows stabilize.Sumit Ritolia, Manager Modelling and Refining at Kpler believes that Russian oil will continue to be a major part of India’s crude oil imports in the coming months as well. Currently, India’s Russian crude imports are tracking at around 1.6mbd, which is approximately 375 kbd lower than March levels.However, as Ritolia points out, this dip needs context as Nayara (≈400 kbd, fully reliant on Russian crude) has been under maintenance since the second week of April. Adjusting for this, the underlying demand signal for Russian barrels remains intact.“The flows are expected to range between 1.5-2 mbd with a slight dip possible due to ongoing infrastructure issues in Russia due to the conflict with Ukraine,” Ritolia tells TOI.Interestingly, Kpler data shows that even after US sanctions on Russian majors Lukoil and Rosneft came into effect late last year, Russia continued to be the largest supplier of crude oil to India. However, admittedly the volumes saw a sharp drop, with February levels being much lower. While the Donald Trump administration claimed finalising a trade deal contingent on India stopping crude imports from Russia, New Delhi has never said it will not buy oil from Moscow.The US first waived the sanctions in early March and then extended the waiver recently. Experts are of the view that even when the sanctions waiver lapses, Russian oil will continue to be imported, though the quantities may dip.“A key point that is often missed is that Russian oil itself is not sanctioned but certain entities, vessels, and financial channels are,” says Sumit Ritolia.According to Ritolia, Russia continues to be a core supplier for India, but in the absence of sanctions waiver procurement must strictly ensure:• No involvement of sanctioned sellers or intermediaries• Use of non-sanctioned vessels• Fully compliant financial, insurance, and trading channelsIndia is unlikely to move away from Russian crude in the near term. Instead, we should expect more documentation, tighter screening rather than a structural shift in sourcing as and when sanctions lapse, Ritolia added.
India’s Diversified Crude Supplies
But even as Russia is expected to continue being an important player in India’s crude imports, it is equally important to note that New Delhi has diversified its basket to include over 40 countries.As Sushil Mishra, Director, Crisil Intelligence points out: Historically, Russia’s share in India’s crude imports peaked at over 40%, however, it has varied in the last few years amid diversification efforts and evolving geopolitical dynamics. Improved refinery flexibilities have enabled Indian refiners to process a wider range of crude grades including those from the American, Russian, and Middle Eastern.“India continues to strengthen its energy resilience by diversifying crude sourcing and maintaining a pragmatic sourcing strategy driven by price, availability, and energy security considerations. This approach allows flexibility to adjust sourcing patterns in response to changing global market conditions and geopolitical developments,” he tells TOI.
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