Kohl's (KSS) Q4 2024 Earnings
GAAP EPS of $0.43 includes $76 million pre-tax in impairments, store closing, and other costs ($0.69 per share pre-tax; $0.52 per share after-tax) related to closure of 27 underperforming stores and the San Bernardino E-Commerce Fulfillment Center
How Did KSS Stock React to Q4 2024 Earnings?
S&P 500 over the same 30 days: −5.64%.
Did KSS Beat Earnings? Q4 2024 Results
Yes. Kohl's reported Q4 2024 earnings of $0.95 a share on Mar 11, 2025, beating the $0.77 consensus estimate by 24.0%. Revenue was $5.4B against a $5.2B estimate.
Kohl's delivered a decisive beat on both the top and bottom lines in Q4 fiscal 2024, yet the results did little to calm investor concerns about the depth of the retailer's structural challenges. Adjusted diluted EPS came in at $0.95, clearing the $0.77 consensus estimate by 24.00%, while revenue of $5.40 billion topped expectations by 4.15%, though net sales still fell 9.4% year-over-year as the company absorbed the loss of a 14th week in the prior-year period and a 6.7% comparable-sales decline. A $76 million charge tied to the closure of 27 underperforming stores and the San Bernardino e-commerce fulfillment center weighed on GAAP results, pulling reported diluted EPS to $0.43. Sephora at Kohl's remained the clearest bright spot, with comparable Sephora sales rising 13% in the quarter. Shares fell sharply after the company issued fiscal 2025 guidance calling for net sales to decline 5% to 7% and diluted EPS of just $0.10 to $0.60, with new CEO Ashley Buchanan cautioning that the turnaround will take time.
- Comparable sales declined 6.7% in Q4
- Gross margin improved 49 basis points driven by promotional event optimization and lower digital penetration
- SG&A expenses declined 4.5% year-over-year benefiting from tightly managed expenses in stores, marketing, and supply chain
- Sephora at Kohl's comparable sales grew 13% in Q4, driven by fragrance, bath and body, and skincare
- Net sales comparison impacted by 14th week in prior year contributing approximately $164 million
- Inventory increased 2% year-over-year to $2.9 billion
“Kohl's is built on a strong foundation that includes operating more than 1,100 conveniently located stores nationwide, serving over 60 million customers, with 30 million of those customers being Kohl's Loyalty Members. Kohl's has a tremendous opportunity to build on our strengths, address key areas of opportunity and better serve our customers every day.”
Kohl's CEO, on the earnings call
What Was Kohl's's Outlook in Q4 2024?
For fiscal year 2025, Kohl's expects net sales to decline 5%–7%, comparable sales to decline 4%–6%, operating margin of 2.2%–2.6%, and diluted EPS of $0.10 to $0.60. Capital expenditures are expected in the range of $400 million to $425 million. The Board reduced the quarterly dividend to $0.125 per share to support balance sheet flexibility. The company plans to refinance its July 2025 debt maturities and focus on rebuilding its cash balance and reducing leverage. Share repurchases are expected to resume over the long term following leverage improvement.
KSS YoY Financials
| Metric | Q4 2024 | Q4 2023 | Year over year |
|---|---|---|---|
| Revenue | $5.4B | $6.0B | −9.4% |
| Gross Profit | $1.9B | $1.9B | +0.8% |
| Operating Income | $126.0M | $299.0M | −57.9% |
| Net Income | $48.0M | $186.0M | −74.2% |
KSS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.