What: Kohl's stock experiences record one-day surge of 38%, reaching $14.34 amid intense social media attention and high short interest, reminiscent of previous meme stock trading patterns.

Why it is important: This sudden stock movement highlights how social media-driven trading can significantly impact traditional retailers, particularly those with high short interest, regardless of their underlying business fundamentals.

Kohl's Corporation shares achieved a historic single-day gain as retail traders turned their attention to the department store chain, driving the stock price up 38% to close at $14.34. The trading session proved particularly volatile, with shares more than doubling at their intraday peak before moderating. The surge marks Kohl's emergence as the newest meme stock, propelled by increased social media mentions and significant short interest, with approximately 48% of its float being used to bet against the stock price. This level of short interest notably exceeds other prominent stocks, including former meme stock favourite GameStop at 20% and tech giants Apple and Tesla at less than 3%. The dramatic price action follows a period where Kohl's shares had been trading in single digits since March, though the stock had already gained more than 60% through the previous day's close despite being down over 25% for the year.

IADS Notes:

Kohl's dramatic stock surge comes amid a period of significant operational restructuring and challenges. In May 2025, the company demonstrated resilience with better-than-expected Q1 results, posting a 3.9% sales decline while managing a leadership transition following CEO Ashley Buchanan's termination. That same month, the company initiated a $360 million refinancing through senior secured notes to address debt obligations, with 48% of its float being sold short. The January 2025 announcement of 27 store closures and the shutdown of its San Bernardino e-commerce facility, shifting to store-based fulfillment, highlighted the company's efforts to streamline operations. This combination of high short interest, recent refinancing, and ongoing transformation efforts has created conditions reminiscent of previous meme stock scenarios, where retail traders target companies undergoing significant changes with high short positions.

Kohl’s skyrockets as stock becomes traders’ latest meme darling