Where Will Kohl's Stock Be in 1 Year?

Dan Victor, The Motley Fool

Thu, Jun 5, 2025, 6:35 AM 5 min read

• 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.