Kohl's (KSS) Q4 2025 Earnings
How Did KSS Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: +0.34%.
Did KSS Beat Earnings? Q4 2025 Results
Yes. Kohl's reported Q4 2025 earnings of $1.07 a share on Mar 10, 2026, beating the $0.84 consensus estimate by 26.7%. Revenue was $5.2B against a $5.1B estimate.
Kohl's delivered a stronger-than-expected fourth quarter for fiscal 2025, posting adjusted diluted EPS of $1.07 against a Wall Street consensus of $0.84, a beat of roughly 26.66%, even as the retailer continued to wrestle with declining top-line momentum. Revenue came in at $5.17 billion, edging past estimates by about 1.99%, though the figure still represented a 4.2% drop from the year-ago period. The profitability outperformance was largely powered by disciplined cost management and cleaner inventory, with SG&A expenses falling 4.9% and gross margin expanding 25 basis points to 33.1% as reduced clearance markdowns offset higher digital shipping costs. Operating income nearly doubled to $212 million, aided by the absence of the $76 million in impairment and store-closing charges that weighed on the prior-year quarter. Shares rallied on the results, reflecting investor relief at the margin improvement despite softer comparable sales. Looking ahead, Kohl's guided fiscal 2026 net sales to range from flat to down 2%, with adjusted diluted EPS projected between $1.00 and $1.60, as the company navigates ongoing consumer spending pressures and tariff-related uncertainty.
- Strong inventory management driving reduced clearance markdowns and gross margin expansion
- Disciplined SG&A spending in stores, marketing, and fulfillment
- Credit-related expense shift from SG&A to Other Revenue
- $129 million gain on credit card interchange fee lawsuit settlement (full year)
- Inventory down 7% year-over-year supporting cash flow generation
“We are ending 2025 in a stronger position than we started, with important work still ahead of us. Over the past year, our efforts have been focused on resetting our foundation. This focus is intended to stabilize the business and strengthen our operational ability to build for a stronger future. In 2025, we made meaningful progress, despite our Q4 topline coming in softer than our expectations. We were able to manage the business with discipline, deliver improved earnings, and generate meaningful cash flow, all of which helped us strengthen our balance sheet.”
Kohl's CEO, on the earnings call
What Was Kohl's's Outlook in Q4 2025?
For fiscal year 2026, Kohl's expects net sales and comparable sales to range from flat to a decrease of 2%. Adjusted operating margin is guided at 2.8% to 3.4%, and adjusted diluted EPS is expected in the range of $1.00 to $1.60. Capital expenditures are projected at approximately $350 million to $400 million. The company declared a quarterly cash dividend of $0.125 per share. Management intends to resume share repurchases over the long-term using excess cash flow following improvement in overall leverage. Tariff-related uncertainty is acknowledged as a risk in the forward-looking statements.
KSS YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $5.2B | $5.4B | −4.2% |
| Gross Profit | $1.6B | $1.7B | −5.3% |
| Operating Income | $212.0M | $202.0M | +5.0% |
| Net Income | $125.0M | $48.0M | +160.4% |
KSS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.