Kohl's (KSS) Q1 2025 Earnings
How Did KSS Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +4.68%.
Did KSS Beat Earnings? Q1 2025 Results
Yes. Kohl's reported Q1 2025 earnings of $-0.13 a share on May 29, 2025, beating the $-0.22 consensus estimate by 41.1%. Revenue was $3.2B against a $3.1B estimate.
Kohl's delivered a cleaner-than-feared first quarter, posting a GAAP diluted loss of $0.13 per share against a consensus estimate of a $0.22 loss, a beat of roughly 41%, while revenue of $3.23 billion topped expectations by 5.58% despite falling 4.4% year-over-year as the retailer continues to navigate persistent top-line pressure. The headline numbers were driven largely by disciplined cost management, with SG&A expenses dropping 5.2% to $1.16 billion and gross margin expanding 37 basis points to 39.9%, helping lift operating income to $60 million from $43 million a year ago and narrow the net loss to just $15 million. Comparable sales declined 3.9%, underscoring that demand recovery remains a work in progress for interim CEO Michael Bender, who is pressing forward with the nearly complete Sephora rollout and an accelerated expansion of Impulse queuing fixtures. The company also recently announced the closure of an Ohio e-fulfillment center, a cost-reduction move expected to generate pre-tax charges of $25 to $30 million in coming quarters. Kohl's reaffirmed its full-year outlook, projecting net sales to decline 5% to 7% and diluted EPS of $0.10 to $0.60.
- Gross margin increased 37 bps driven by category mix benefits and inventory management
- SG&A expenses decreased 5.2% through tightly managed spending in stores, marketing, and supply chain
- Credit expense shift from SG&A to Other Revenue provided additional SG&A benefit
- Comparable sales declined 3.9%
- Net sales declined 4.1% year-over-year
“I am honored to assume the role of Interim CEO at such an important time for our company. Kohl's has a tremendous opportunity to build on our strong foundation of over 1,100 conveniently located stores and a large and loyal customer base.”
Kohl's CEO, on the earnings call
What Was Kohl's's Outlook in Q1 2025?
Kohl's affirmed its full-year 2025 financial outlook: net sales decline of 5% to 7% vs. 2024, comparable sales decline of 4% to 6%, operating margin of 2.2% to 2.6%, diluted EPS of $0.10 to $0.60, and capital expenditures of $400 million to $425 million. Capital allocation priorities include completing the Sephora rollout, expanding impulse queuing fixtures, enhancing omni-channel experience, reducing debt and reliance on the revolver, and maintaining a reduced annual dividend of $0.50 per share. The company plans to resume share repurchases over the long term with excess cash flow following improvement in overall leverage.
KSS YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $3.2B | $3.4B | −4.4% |
| Gross Profit | $1.2B | $1.3B | −4.4% |
| Operating Income | $60.0M | $43.0M | +39.5% |
| Net Income | −$15.0M | −$10.4M | +44.4% |
KSS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.