Kohl's

Kohl's (KSS) Q1 2026 Earnings

Reported May 29, 2025 at 7:01 AM ET · SEC Source

Q1 26 EPS

$-0.13

BEAT +41.12%

Est. $-0.22

Q1 26 Revenue

$3.05B

MISS 0.42%

Est. $3.06B

vs S&P Since Q1 26

+73.8%

BEATING MARKET

KSS +101.2% vs S&P +27.4%

Market Reaction

Did KSS Beat Earnings? Q1 2026 Results

Kohl's delivered a first-quarter fiscal 2025 earnings beat that offered some relief to investors watching the struggling department store retailer, as the company posted a diluted loss of $0.13 per share against a consensus estimate of $0.22, a 41.12… Read more Kohl's delivered a first-quarter fiscal 2025 earnings beat that offered some relief to investors watching the struggling department store retailer, as the company posted a diluted loss of $0.13 per share against a consensus estimate of $0.22, a 41.12% positive surprise, even as revenue of $3.05 billion fell just shy of the $3.06 billion estimate and dropped 9.8% year over year. The narrower-than-expected loss was driven primarily by margin discipline and cost containment, with gross margin expanding to 39.9% and SG&A expenses declining 5.2% to $1.16 billion, helping lift operating income to $60 million from $43 million a year ago. Comparable sales fell 3.9%, underscoring persistent traffic headwinds, and the balance sheet showed strain with cash at $153 million and revolver borrowings climbing to $545 million. The company also announced the closure of its Monroe, Ohio e-fulfillment center, a cost-reduction move expected to carry $25 to $30 million in pre-tax charges. Kohl's affirmed its full-year outlook, projecting net sales to decline 5% to 7% and diluted EPS of $0.10 to $0.60.

Key Takeaways

  • Gross margin expansion of 37 basis points driven by category mix benefits and inventory management
  • SG&A expense reduction of 5.2% from lower spending in stores, marketing, and supply chain
  • Credit expense shift from SG&A to Other Revenue
  • Operating income improved to $60 million from $43 million year-over-year
  • Net loss narrowed to ($0.13) per diluted share from ($0.24) in prior year
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KSS YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

“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.”

— Michael Bender, Q1 2026 Earnings Press Release