Citigroup Reaffirms 'Hold' on Kohl's (NYSE: KSS) Amid Turnaround Efforts

• Investment firm Citigroup has reiterated a "hold" rating for Kohl's (NYSE: KSS), coupled with a "Positive" grade, reflecting cautious optimism in the department store's turnaround strategy.
• Shares of Kohl's have shown significant momentum, rallying 38.8% over the past three months and over 130% in the last year, outpacing the broader retail sector.
• The company's focus on proprietary brands has boosted its gross margin to 39.9%, though challenges like increased digital shipping costs and macroeconomic pressures persist.

On June 27, 2026, the investment firm Citigroup reiterated its "hold" rating for Kohl's (NYSE: KSS), while maintaining a "Positive" grade on the stock. Kohl's is a department store retailer that is currently implementing a turnaround strategy. It aims to regain market share after its stock value declined nearly 70% over the past five years.

The "Positive" grade from Citigroup reflects growing investor confidence in the company's new direction. As highlighted by Zacks, shares of Kohl's have rallied 38.8% over the past three months, outpacing the retail sector. This follows a climb of more than 130% in the past year as the company focuses on its core strategies.

A key part of this strategy involves sharpening the focus on Kohl's proprietary brands like FLX and Tek Gear. In the first fiscal quarter, these brands delivered a 6% comparable sales increase. This performance helped the company's gross margin, the profit made on goods sold, expand to 39.9%.

However, the "hold" rating indicates that challenges remain. The benefit from a higher gross margin was largely offset by increased costs associated with digital shipping. Kohl's also faces tough competition and macroeconomic pressures that affect its shoppers. The company's own guidance projects that sales will be flat to down 2%.

At the time of the rating, the stock price for Kohl's was $19.23. The company currently has a market capitalization of approximately $2.18 billion. Over the past 52 weeks, the stock has traded between a low of $8.34 and a high of $25.22, showing significant volatility during its turnaround efforts.