Overview
- Kohl’s Q4 net sales fell 3.9% to $4.97 billion with comparable sales down 2.8%, missing revenue expectations as adjusted EPS rose to $1.07 and gross margin expanded 25 bps to 33.1%.
- Fiscal 2025 net sales declined 4% and comps fell 3.1%, but operating income increased to $624 million and operating cash flow surged to about $1.4 billion, aided by tight inventory and cost control.
- Full-year results included a $129 million legal‑settlement gain, and the company ended the year with no borrowings on its revolver and inventory down 7% year over year.
- For 2026, Kohl’s guided comparable sales to a range of down 2% to flat and adjusted EPS of $1.00–$1.60, with Q1 comps expected to be down low single digits and adjusted operating margin projected at 2.8%–3.4%.
- Shares fell as much as 9% in premarket trading and are down roughly 27%–28% year to date, as analysts including Goldman Sachs and J.P. Morgan issued downgrades and target cuts citing persistent comp weakness and competitive traffic losses.