Investing.com -- Kohl’s on Thursday maintained its annual targets after reporting a smaller-than-expected loss, showing signs that turnaround efforts under CEO Michael Bender have begun to take effect, sending shares soaring 23%.

Kohl’s Chief Executive Officer Michael Bender said the company’s initiatives helped improve sales trends and inventory management during the quarter.

“We are pleased with our start to 2026,” Bender said in the earnings release. “Our key initiatives continue to drive progressive improvements to the business.”

After being appointed permanent CEO in November, Bender introduced a series of initiatives aimed at reviving the struggling retailer. Earlier this year, he announced plans to cut underperforming styles and place greater emphasis on core basics. Kohl’s has also expanded its offerings in jewelry and accessories, and deepened its partnership with Sephora to draw in younger shoppers while retaining loyal customers.

The department store chain has faced years of declining sales and shrinking profits as it lost market share to Amazon and off-price competitors. The company has dealt with strategic missteps, supply chain problems and weak demand for discretionary items.

Kohl’s reaffirmed its fiscal 2026 outlook, projecting net sales and comparable sales between a 2% decline and flat growth for the year. The company expects adjusted diluted earnings per share between $1.00 and $1.60.

The company, however, reported a decline in first-quarter sales on as the department store retailer continued to face pressure on consumer spending.

For the quarter ended May 2, Kohl’s posted net sales of $3.0 billion, down 1.7% from $3.05 billion a year earlier. Comparable sales fell 1.1% year over year.

The company reported a net loss of $14 million, or $0.13 per diluted share, compared with analysts’ expectations of a loss of $0.21 per share.

The retailer also announced a quarterly cash dividend of $0.125 per share, payable June 24 to shareholders of record on June 10.