10:42 AM EST, 11/25/2025 (MT Newswires) -- Kohl's (KSS) improved its full-year outlook on Tuesday and sounded optimistic heading into the crucial holiday shopping season despite economic pressures that it said are weighing on consumers' purchasing power.

The department store chain's adjusted earnings are now set to come in between $1.25 and $1.45 per share this fiscal year, up from $0.50 and $0.80 previously expected. The current consensus on FactSet is for $0.77.

Comparable sales are projected to drop by 2.5% to 3%, compared with the prior forecast that called for a 4% to 5% fall. Analyst predict same-store sales to decline by 4.2%.

The upgraded outlook comes as Chief Executive Michael Bender said during an earnings conference call that the company benefited from a sequential increase in fiscal third-quarter transactions.

The stock jumped 35% in Tuesday trade. It's up 62% over the past three months, and has gained 50% so far this year.

"We're excited about the momentum and opportunity we have heading into the holidays," Bender told analysts, according to a FactSet transcript. Bender, who became interim CEO after Kohl's fired Ashley Buchanan earlier this year over violations of the company's conflict of interest policy, was named permanent CEO on Monday.

The company is confident about its inventory position ahead of the busy period, though it flagged a weak spending environment. Consumers feel pinched by inflation that clocked in at 3% year over year in September.

"We continue to operate an environment where our customers are becoming increasingly choiceful as their discretionary income remains pressured," Bender said. "This is especially notable in our low-to middle-income consumers, as well as in our younger customers. These customers are becoming increasingly savvy and are seeking more value."

For the fiscal third quarter that ended Nov. 1, Kohl's revenue slipped 2.8% to $3.41 billion, but surpassed analysts' estimate for $3.32 billion. Comparable sales slid 1.7%, better than expectations for a 3.7% decline.

Adjusted EPS for the quarter fell to $0.10 from $0.20 the year before, compared with Wall Street's view for a $0.16 loss.

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