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Kohl's Stock Soars 20% as Struggling Retailer Says Turnaround Effort Is Working

1. Kohl's Q2 profit exceeded forecasts with adjusted EPS of $0.56. 2. Comparable sales decline was smaller than predicted, at 4.2%. 3. Gross margin increased to 39.9% and SG&A expenses dropped 4.1%. 4. Kohl's raised full-year revenue guidance, now expecting a 5-6% drop. 5. Shares surged 20%, hitting their highest level in nine months.

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FAQ

Why Bullish?

KSS's earnings exceeded forecasts, indicating strong operational effectiveness despite revenue drop. Past instances show similar earnings beats often lead to sustained positive stock movements.

How important is it?

The significant earnings beat and better guidance strongly impact investor confidence and stock price.

Why Short Term?

Recent positive earnings will likely influence immediate investor sentiment and trading behavior, though external factors may impact longer-term performance.

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