Kohl’s upgraded to Buy after strong Q1 results and steady margins amid macro challenges.

Kohl’s stock was upgraded to a Buy rating following better-than-expected Q1 earnings, where the company reported a smaller EPS loss than forecasted and a 6% growth in proprietary brands. Gross margins remained stable at 39.9%, and the company maintained its guidance for flat to slightly negative sales and an EPS range of $1.00 to $1.60. Despite elevated leverage at 4.2x, Kohl’s has stable liquidity, a 3.5% dividend yield, and plans to reduce debt, supporting a positive outlook for the retailer’s turnaround efforts amid ongoing macroeconomic pressures.