Despite weak 2025 forecasts and no permanent CEO, Kohl's stock surged on social media-fueled hype.
Kohl’s shares jumped 37% in a meme-stock-style rally, despite no corporate news and continued retail challenges to justify the sharp rise.
The department store chain’s stock briefly more than doubled from Monday’s close of $10.42 before paring gains sharply within 30 minutes of the market opening. At one point, trading was temporarily halted due to high volatility. By the end of the day, Kohl’s still closed significantly higher.
Trading volume was nearly 17 times the 30-day average by late morning, fueling speculation of a short squeeze.
According to FactSet, around 50% of Kohl’s outstanding shares are currently sold short, positioning the stock as a ripe target for retail investor interest. Chatter on Reddit’s Wall Street Bets forum identified Kohl’s as a potential squeeze candidate, given its brand recognition and legacy status.
Kohl’s joins a growing list of retailers whose shares have drawn meme-stock attention, despite underlying business challenges. The company operates over 1,100 stores nationwide and has previously been linked to takeover bids and activist campaigns. However, it has also faced inclusion in bankruptcy watchlists.
“There’s a lot of irrational exuberance around the stock,” said Neil Saunders, managing director at GlobalData. “It’s very similar to what we saw with Bed Bath & Beyond. Fundamentally, Kohl’s hasn’t done anything to warrant this surge — its business outlook remains weak.”
Kohl’s is currently without a permanent CEO following the ouster of Ashley Buchanan amid a conflict-of-interest scandal.
In May, the retailer forecast a 5% to 7% decline in total sales for fiscal 2025, with comparable sales expected to fall between 4% and 6%, reflecting continued operational headwinds.
