Please ensure Javascript is enabled for purposes of website accessibility

Why Kohl's Inc. Stock Popped Today

By Jeremy Bowman - Dec 26, 2017 at 12:20PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares of the department store chain rose on a broader move in retail stocks after a strong holiday season.

What happened

Shares of Kohl's Inc. (KSS 2.98%) were moving higher today as the department store chain rode a bullish wave among retail stocks as the holiday shopping season came to a roaring end over Christmas weekend. In what's reportedly been the best holiday season in years, many retail stocks have been surging since Black Friday, and it's not a surprise to find Kohl's among the winners since the national chain is one of the biggest retailers in the country.

Kohl's(KSS 2.98%) stock was up 4.9% as of 11:04 a.m. EST Monday and has gained 25% over the past month.

The exterior of a Kohl's store.

Image source: Kohl's.

So what 

Much of the department store sector was higher this morning; J.C. Penney jumped more than 8%, Macy's was up nearly as much as Kohl's, and even the SPDR S&P Retail ETF had gained 1.2%. A combination of a strong economy, a stock market at an all-time high, low unemployment, low gas prices, a long holiday season with an early Thanksgiving, and Christmas falling on Monday, leaving a full weekend for last-minute holiday shopping, seemed to be just that cure that brick-and-mortar chains needed. 

According to Customer Growth Partners, a retail research firm, total U.S. retail sales for the holiday season reached $598 million, up from $565 million a year ago, or a 6% increase, much stronger than retail sales growth has been throughout the year. 

Now what 

Kohl's is in a better position than many of its peers -- the company has mostly resisted closing stores and has been able to stabilize comparable sales and earnings per share, while other retailers have seen declines. Kohl's also made the controversial move to partner with Amazon by accepting returns and selling Amazon products in a handful of stores, but the company hasn't yet revealed the results of that pilot program.

With shares surging during the holiday season, investors are clearly expecting strong results. We'll learn more when the company reports sales for November and December in early January.


John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeremy Bowman owns shares of J.C. Penney. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Kohl's Corporation Stock Quote
Kohl's Corporation
$31.46 (2.98%) $0.91
Macy's, Inc. Stock Quote
Macy's, Inc.
$18.78 (5.27%) $0.94, Inc. Stock Quote, Inc.
$139.41 (-0.99%) $-1.39
J. C. Penney Company, Inc. Stock Quote
J. C. Penney Company, Inc.
SPDR Series Trust - SPDR S&P Retail ETF Stock Quote
SPDR Series Trust - SPDR S&P Retail ETF
$69.32 (3.60%) $2.41

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/08/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.