Overview
- Fourth-quarter net sales were $5.0 billion, down 3.9% with comparable sales off 2.8%, while adjusted EPS rose to $1.07 and gross margin improved 25 basis points to 33.1%.
- For fiscal 2026, Kohl’s guided comparable sales to down 2% to flat and adjusted EPS to $1.00–$1.60, with operating margin of 2.8% to 3.4% and capital spending of $350 million to $400 million.
- Shares fell as much as about 9% in premarket trading after the report as investors focused on the softer sales outlook.
- Executives cited roughly a 70 basis point weather hit and missteps in seasonal inventory depth, allocation and promotional intensity, noting share losses during key holiday weeks; third‑party data showed Q4 store visits down about 5%.
- Full-year operating cash flow rose to roughly $1.4 billion, inventory declined 7%, the company ended with no revolver borrowings, and a $129 million legal-settlement gain aided results, as Kohl’s advances private-label, Sephora and store reset initiatives including “trip assurance.”