How did Kohl's stock jump 17% despite declining sales and ongoing CEO drama?

Kohl’s Beats Earnings Estimates in Q2 Why Is Kohl’s Sales Declining? Live Events Sales Trends Improved Toward the End of the Quarter Kohl’s Full-Year Guidance Adjusted Ongoing CEO Turmoil at Kohl’s Michelle Gass left in late 2022 to join Levi Strauss as president and later CEO. Tom Kingsbury, a member of Kohl’s board and former CEO of Burlington, stepped in, but then he left after two years. Ashley Buchanan, ex-CEO of Michaels and a former Walmart exec, took over, but was fired just four months later after an internal investigation found he’d pushed deals with a vendor owned by his girlfriend. Now, Kohl’s board member Michael Bender is leading as interim CEO. FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel : Kohl’s stock increased over 17% on Wednesday after the retailer posted earnings that outperformed Wall Street expectations in the second quarter, even though sales declined and the company continues its search for a new CEO, as per a report.CNBC reported that, the firm posted adjusted earnings per share of 56 cents, compared to the analyst expectations of 29 cents. Revenue reached $3.35 billion, just above forecasts of $3.32 billion, as per the report. The net income was $153 million, or $1.35 per share, compared with $66 million, or 59 cents per share, in the year-ago period, and net sales dropped from $3.53 billion in the year-ago quarter, as reported by CNBC.ALSO READ: Charge them with RICO! Trump goes after George Soros and son in fiery post over violent protests Interim CEO Michael Bender explained that the department store’s slower sales are due to the economic conditions, as lower and middle-income customers are opting for less-expensive brands, according to the report.Bender pointed out that Kohl’s is working to fix its mistakes. He gave an example that the firm is reintroducing the petite section, which it had removed and 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, as reported by CNBC. The retail company is also overhauling its discount strategy so that customers are able to use coupons for more of its brands, according to the report.ALSO READ: Orange way - the real Dutch secret: A four-day week that boosts happiness without ruining economic growth He said that sales trends had improved throughout the quarter, while it posted its weakest performance in May, improved in June and had its strongest month of the three-month period in July and that month's comparable sales were in line with the year-ago period, as per the CNBC report.Meanwhile, the firm narrowed its full-year sales guidance as it now expects net sales to decline by between 5% and 6%, while it had previously anticipated sales would fall 5% to 7%, as reported by CNBC.Kohl’s also revised its full-year earnings per share guidance, it now expects earnings to be in the range of 50 cents to 80 cents per share adjusted, according to the report.ALSO READ: Is AI therapy safe? Hidden risks you must know before using chatbots for mental health The retailer has also been facing leadership changes in the executive suite. Kohl’s has had three CEOs since late 2022, as per CNBC.Kohl’s stock jumped over 17% after it beat Wall Street’s earnings expectations for Q2, despite lower sales.Economic challenges are pushing lower- and middle-income shoppers to choose cheaper brands, affecting Kohl’s sales.