Analyst Sees Kohl's Store-Brand Revival Lifting Holiday Sales Prospects

what happened

Barron's reports that analyst Chuck Grom at Gordon Haskett has raised his rating on Kohl's to Buy from Hold, setting a $27 price target. He argues that the department store's push to rebuild its cheaper own-label lineup could make the chain a standout performer during the holiday season, even though shoppers are cutting back.

Shares climbed 12% on Thursday to $24.71. Private brands had fallen to 31% of sales from 55% before CEO Michael Bender took over in late 2025, and Grom sees that segment, especially women's clothing at roughly 30% of revenue, helping to drive sales higher. He also says the 0.9% decline in comparable sales in the second quarter reflected overly cautious inventory, which has since been replenished for the second half of the year.

Wall Street remains skeptical: seven of 16 analysts polled by FactSet recommend selling the stock, and only two rate it a Buy. Comparable sales have now declined for 18 consecutive periods.

why it matters

Macy's and Burlington Stores also edged higher on Thursday, up 2.1% and 1.7% respectively, but their gains were far smaller than Kohl's move. For investors, the story shows how assortment and inventory management can shift sentiment, while rising inflationary pressures and weaker sales keep bearish views in place.

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