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WebsiteStock Slides Over 5% Intraday on Tariff Ruling Delay
On January 9, shares of Kohl’s Corporation (KSS) fell about 5.7% during the trading session on the New York Stock Exchange, closing at $20.54. The drop halted the early‐year rebound, reducing Kohl’s market capitalization to approximately $2.30 billion and erasing some $123.85 million in value in a single day. Trading volume exceeded 2.04 million shares, well above recent averages.
## Supreme Court Tariff Decision Postponement Dampens Retail
The sell-off was triggered when the U.S. Supreme Court delayed a key ruling on tariffs for China‐imported goods until after January 14. With apparel and accessories accounting for a large portion of sales at mid-tier department stores like Kohl’s, investors fear that sustained or higher duties would immediately squeeze margins—Kohl’s has limited ability to raise prices in line with rising costs. Many view this added uncertainty as a further burden on Kohl’s already volatile performance throughout 2025.
## Turnaround Hopes Curtailed by Earnings and Fundamentals Concerns
At the end of November, Kohl’s had twice raised its full‐year profit outlook, emphasizing narrowing revenue declines and improving margins, which propelled the stock more than 40% in a single day. Cost‐cutting measures, merchandise‐mix adjustments and the in‐store Sephora shop‐in‐shop model were seen as catalysts for a structural turnaround. However, recent analysis shows same‐store sales at Sephora outlets rolling into negative territory again, while inventory and promotional pressures have eroded margins. Some analysts have downgraded Kohl’s to a “sell,” arguing that the recovery narrative may have been overstated. The tariff postponement has reignited these concerns, casting a shadow over near‐term stock performance.
Technical Sell Signal and Short-Term Volatility Alert
Technical indicators also point to growing downside risk. Certain chart studies note that Kohl’s stock is trading in the middle section of a medium‐term downtrend channel, with a stop‐loss level just 0.3% above current prices but a potential 20% decline if the channel holds—an extreme short risk‐reward setup. Given the wild swings between the low $20s and low $22s in early January, many expect heightened volatility around the January 14 tariff decision as policy news and earnings momentum drive price action.
