What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Discount Retailer company Ross Stores (NASDAQ:ROST) jumped 5.7%. Is now the time to buy Ross Stores? Access our full analysis report here, it’s free.
- Department Store company Kohl's (NYSE:KSS) jumped 7%. Is now the time to buy Kohl's? Access our full analysis report here, it’s free.
- Home Furniture Retailer company Arhaus (NASDAQ:ARHS) jumped 5.9%. Is now the time to buy Arhaus? Access our full analysis report here, it’s free.
- Sit-Down Dining company Bloomin' Brands (NASDAQ:BLMN) jumped 5.9%. Is now the time to buy Bloomin' Brands? Access our full analysis report here, it’s free.
- Sit-Down Dining company The Cheesecake Factory (NASDAQ:CAKE) jumped 6.1%. Is now the time to buy The Cheesecake Factory? Access our full analysis report here, it’s free.
Zooming In On Kohl's (KSS)
Kohl’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock dropped 27.9% on the news that the company reported weak first quarter 2024 results that missed significantly on same-store sales, leading to an EPS miss.
Precisely, net sales decreased 5.3% and comparable sales fell 4.4%. The weakness was mostly driven by a significant decline in clearance sales, which negatively impacted overall comparable sales by more than 6%.
Looking ahead, the company lowered its full year outlook across the board. Management attributed the conservative guidance to the Q1 underperformance and the ongoing uncertainty in the consumer environment.
Despite these challenges, Kohl's highlighted some positive aspects of its performance, including improved gross expansion (highlighting success with its improved pricing strategy), inventory reduction, and continued strong growth in Sephora. Overall, this was a bad quarter for Kohl's given the weak performance and poor guidance.
Kohl's is down 42.9% since the beginning of the year, and at $8.02 per share, it is trading 70.6% below its 52-week high of $27.25 from May 2024. Investors who bought $1,000 worth of Kohl’s shares 5 years ago would now be looking at an investment worth $359.58.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.