Bloomberg Intelligence Kohl’s Jumps on Outlook Boost in Sign of Consumer Resilience
11 snips
Aug 27, 2025 
In this discussion, Mary Ross Gilbert, a Senior Equity Analyst covering retail, shares insights on Kohl's optimistic sales outlook and strategies for recovery after 14 quarters of decline. Michael Halen, a Senior Restaurant and Food Service Analyst, talks about Cracker Barrel's branding overhaul after a controversial logo change. The conversation also touches on Abercrombie's positive earnings and the broader retail landscape, highlighting adaptability amid economic challenges and changes in consumer behavior.
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Kohl's Early Signs Of Stabilization
- Kohl's showed encouraging signs as July sales were flat, helping ease three years of comp declines.
- Private brands and value assortments are driving margin improvement and early stabilization.
Short-Covering Fueled Kohl's Stock Move
- Part of Kohl's share rally reflected short-covering with a large percent of shares borrowed.
- That borrowing makes it take days for shorts to fully cover, amplifying stock moves.
How Retailers Manage Tariff Pressure
- Share tariff pain with suppliers, absorb part of the cost, and selectively raise prices where consumers won't notice.
- Use private-labels to improve margin and offset tariff impacts.