Kohl’s Stock Surge and Meme Stock Possibility: What’s Happening Today

July 22, 2025

Update. 6:30pm

Update: Kohl’s Stock Closes Up 37.99% Amid Meme Stock Frenzy
On July 22, 2025, Kohl’s Corporation (NYSE: KSS) stock surged dramatically, closing at $14.37, a 37.99% increase from the previous day’s close of $10.42, after peaking at $21.34 during the session. The stock experienced intense volatility, with trading halts triggered multiple times due to a suspected short squeeze fueled by retail investor activity on platforms like Reddit’s WallStreetBets and StockTwits. Trading volume reached an extraordinary 198.73 million shares, exceeding the company’s 112.04 million shares outstanding. Kohl’s issued no official statement regarding the day’s trading activity, leaving the rally attributed to speculative trading rather than fundamental developments. Investors should remain cautious, as the stock’s rapid rise may not reflect operational improvements.

Kohl’s Corporation (NYSE: KSS) stock experienced a dramatic surge today, climbing as much as 105% in pre-market trading and settling at approximately $19.64 by mid-morning, up from Monday’s close of $10.42. This volatility, which triggered multiple trading halts, has sparked widespread speculation about Kohl’s becoming the latest “meme stock” driven by retail investor enthusiasm and a potential short squeeze.

Meme Stock Possibility

The meteoric rise in Kohl’s stock today aligns with characteristics of a meme stock, a phenomenon popularized in 2021 with stocks like GameStop and AMC Entertainment. Meme stocks are typically driven by coordinated retail investor activity, often amplified through social media platforms like Reddit’s WallStreetBets and StockTwits, targeting heavily shorted stocks to trigger short squeezes. Kohl’s fits this profile due to several factors:

  1. High Short Interest: As of mid-June, approximately 49% to 63% of Kohl’s float was shorted, making it a prime target for a short squeeze. When retail traders buy en masse, short sellers are forced to cover their positions by purchasing shares, driving the price higher. Today’s trading volume, nearly matching Kohl’s 112.04 million shares outstanding by 10:30 a.m. ET, reflects this intense buying pressure (Yahoo Finance).
  2. Social Media Buzz: Posts on X and reports from Bloomberg and CNBC indicate significant retail investor chatter on platforms like Reddit’s WallStreetBets and StockTwits. This social media-driven momentum, described as “self-fulfilling” by Steve Sosnick of Interactive Brokers, mirrors the 2021 meme stock craze. No major corporate announcements or earnings reports accompanied today’s surge, suggesting the rally is primarily retail-driven (Bloomberg).
  3. Comparison to Recent Meme Stocks: Kohl’s surge follows a similar pattern to Opendoor Technologies (NASDAQ: OPEN), which saw a 300% rise in recent sessions due to retail investor activity. Both stocks share high short interest and consumer-facing brand recognition, key traits of meme stocks (Colitco). Analysts note that nostalgia for familiar brands like Kohl’s fuels retail investor enthusiasm (Axios).
  4. Lack of Fundamental Catalyst: The only notable analyst action was Goldman Sachs raising its price target from $5 to $7 while maintaining a “sell” rating, insufficient to justify a 105% surge (Yahoo Finance). This absence of fundamental news reinforces the meme stock narrative, as the rally appears driven by speculative trading rather than operational improvements.

However, the meme stock status comes with risks. Historical examples like GameStop and AMC saw sharp declines after initial surges, and analysts warn that Kohl’s weak fundamentals—declining sales, leadership instability, and competitive pressures—could lead to a similar outcome. Kim Forrest of Bokeh Capital Partners described such moves as “crazy group moves” driven by momentum rather than business performance (Investopedia).

Kohl’s Financial and Operational Context

Kohl’s has faced significant challenges, as previously reported by Dairylandsentinel.com. In Q1 2024, the company reported a net loss of $27 million and a 5.3% year-over-year revenue decline to $3.18 billion, missing analyst expectations of $3.34 billion (Yahoo Finance). Kohl’s lowered its 2024 guidance, projecting a 4% to 6% drop in comparable sales and earnings per share of $0.10 to $0.60, below estimates of $1.23. The company announced plans to close 27 underperforming stores and its San Bernardino e-commerce fulfillment center by April 2025 to cut costs. Despite these challenges, its Sephora partnership drove a 6% sales increase in Q1 2025, and SG&A expenses fell 5.2%. However, digital sales dropped 7.7%, reflecting ongoing competition from Amazon and discount retailers (CNN).

Analyst sentiment remains bearish, with a consensus “Moderate Sell” rating based on five holds and seven sells, and an average price target of $6.83, implying a 51.66% downside from today’s price (Nasdaq). UBS and Barclays maintain “sell” ratings with targets as low as $4, citing economic pressures like inflation and potential tariffs. Morningstar’s “no-moat” rating highlights Kohl’s vulnerability to competitors (The Motley Fool).

Company Background

As covered by Dairylandsentinel.com, Kohl’s, headquartered in Menomonee Falls, Wisconsin, operates approximately 1,100 stores across 49 states (excluding Hawaii) and an e-commerce platform at www.kohls.com. Founded in 1962 by Maxwell Kohl as a Milwaukee grocery store, it grew into a department store chain, going public in 1992 after ownership changes involving British American Tobacco. Kohl’s became the largest U.S. department store chain in 2012, surpassing JCPenney, and was the 23rd-largest retailer by revenue in 2019. It offers private-label brands like Apt. 9, Croft & Barrow, and Sonoma Goods for Life, alongside national brands like LC Lauren Conrad. Women’s apparel accounts for 25% of sales. Digital sales reached $4.3 billion in 2024, but operating margins remain in the mid-single digits (Google Finance). Leadership instability persists, with Michael Bender as Acting CEO since May 2025, following Ashley Buchanan’s brief tenure, which ended due to a conflict-of-interest scandal (ZeroHedge).

Risks and Outlook

The meme stock frenzy offers short-term opportunities for traders but poses significant risks. Kohl’s current ratio of 1.1 suggests potential liquidity issues, and its stock trades at a 294% premium to Morningstar’s valuation. While its real estate holdings and Sephora partnership are potential value drivers, unlocking these assets is complex, as seen in Macy’s case. The 4.8% dividend yield remains attractive, but a recent dividend cut signals caution. Analysts like Neil Saunders of GlobalData warn that today’s gains do not reflect operational improvements, and the stock’s volatility could lead to sharp declines (Bloomberg).

The meme stock possibility hinges on sustained retail investor momentum, but history suggests such rallies are short-lived. Investors should approach with caution, as Kohl’s underlying challenges—declining sales, competitive pressures, and leadership turnover—persist.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.

Previously in Dairyland Sentinel

Kohl’s Ousts CEO Ashley Buchanan Over Policy Violations; Michael Bender Named Interim Chief Executive

Sources