Kohl's (KSS) Q3 2025 Earnings
Includes $4 million in impairments, store closing, and other costs, partially offset by a $1 million income tax benefit on those items
How Did KSS Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +1.90%.
Did KSS Beat Earnings? Q3 2025 Results
Yes. Kohl's reported Q3 2025 earnings of $0.10 a share on Nov 25, 2025, beating the $-0.18 consensus estimate by 155.8%. Revenue was $3.6B against a $3.4B estimate.
Kohl's delivered a surprisingly profitable third quarter, posting adjusted diluted EPS of $0.10 against a Wall Street consensus that had anticipated a loss, a meaningful swing that sent shares soaring more than 26% in the session following the report. Total revenue of $3.58 billion beat estimates by 6.14%, even as the top line slipped 3.6% year over year, with net sales declining 2.8% to $3.41 billion amid a challenging retail environment. The clearest driver of the earnings beat was gross margin expansion of 51 basis points to 39.6%, fueled by stronger proprietary brand penetration, favorable category mix, and disciplined inventory management, with stock levels down 5% from a year ago. Adjusted results reflect $4 million in impairment and store-closing costs, partially offset by a $1 million tax benefit on those items. Kohl's also permanently appointed Michael Bender as CEO after he had served in an interim capacity since May. Looking ahead, the company raised its full-year 2025 outlook, now targeting adjusted diluted EPS of $1.25 to $1.45 and an adjusted operating margin of 3.1% to 3.2%.
- Gross margin expansion of 51 basis points driven by greater proprietary brand penetration, category mix benefits, and strong inventory management
- Proprietary brands grew +1% in Q3
- Juniors and Accessories benefited from proximity to Sephora shops, delivering positive sales growth
- SG&A expense declined 2.1% year-over-year from tightly managed expenses in stores, marketing, and fulfillment
- Impulse queueing line rollout delivered over 40% sales growth in Q3
- Inventory decreased 5% year-over-year
- Revolver borrowings reduced to $45 million from $749 million year-over-year
“We are pleased with Kohl's third quarter results, marking a third consecutive quarter of delivering top-line and bottom-line performance ahead of our expectations. These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we continue to move in the right direction. We are focused on building on this momentum, as we remain committed to delivering quality products, great value, and a frictionless experience to our customers in an uncertain macroeconomic environment.”
Kohl's CEO, on the earnings call
What Was Kohl's's Outlook in Q3 2025?
For full year 2025, Kohl's expects net sales to decline 3.5% to 4%, comparable sales to decline 2.5% to 3%, adjusted operating margin in the range of 3.1% to 3.2%, and adjusted diluted EPS in the range of $1.25 to $1.45. Capital expenditures are expected at approximately $400 million. The company declared a quarterly dividend of $0.125 per share. Kohl's intends to resume share repurchases over the long term following improvement in overall leverage. The company is focused on rebuilding its cash balance, reducing reliance on the revolver, and further reducing debt and overall leverage.
KSS YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $3.6B | $3.7B | −3.6% |
| Gross Profit | $1.3B | $1.4B | −3.0% |
| Operating Income | $73.0M | $98.0M | −25.5% |
| Net Income | $8.0M | $22.0M | −63.6% |
KSS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.