Kohl's (KSS) Q1 2026 Earnings
How Did KSS Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: −1.04%.
Did KSS Beat Earnings? Q1 2026 Results
Yes. Kohl's reported Q1 2026 earnings of $-0.13 a share on May 28, 2026, beating the $-0.19 consensus estimate by 31.5%. Revenue was $3.2B against a $3.0B estimate.
Kohl's delivered a better-than-expected first quarter for fiscal 2026, offering early signs that its turnaround efforts are beginning to take hold. The department store chain reported a GAAP diluted loss of $0.13 per share on total revenue of $3.17 billion, beating the consensus EPS estimate of negative $0.19 by 31.54% and clearing the $3.03 billion revenue forecast by 4.61%. Revenue slipped 2.0% year-over-year, but a sharp reduction in interest expense, which fell to $63 million from $76 million a year ago on the back of active debt reduction, helped keep the net loss nearly flat at $14 million. Comparable sales declined just 1.1%, which management described as the company's best such performance in over four years, with proprietary brands posting a 6% comp and the Juniors category up 10%. Cash on hand nearly tripled to $429 million, and the company ended the quarter with zero revolving credit borrowings. Kohl's reaffirmed its full-year outlook, projecting net sales flat to down 2% and adjusted diluted EPS of $1.00 to $1.60, while a Citigroup upgrade to neutral added a layer of cautious optimism around the stock's reduced valuation.
- Proprietary brands delivered 6% comp in Q1, driving higher gross margin through increased penetration
- Juniors business grew by 10% led by strength from So. Footwear
- Impulse business accelerated, running up over 50% in Q1
- Strength in Jewelry business led by fashion and bridge jewelry
- SG&A expense declined 1.6% from collective savings in credit and corporate expenses
- Interest expense decreased to $63 million from $76 million year-over-year
- Inventory decreased 8% year-over-year to $2.9 billion
“We are pleased with our start to 2026. Our key initiatives continue to drive progressive improvements to the business, resulting in our best comparable sales performance in over four years. In addition, we continue to manage the business with great discipline leading to strong expense management, cleaner inventories, and an improved balance sheet.”
Kohl's CEO, on the earnings call
What Was Kohl's's Outlook in Q1 2026?
Kohl's affirmed its full-year 2026 financial outlook: net sales and comparable sales expected flat to down 2% versus 2025; adjusted operating margin of 2.8% to 3.4% (non-GAAP); adjusted diluted EPS of $1.00 to $1.60 (non-GAAP); capital expenditures of $350 million to $400 million. The company declared a quarterly cash dividend of $0.125 per share payable June 24, 2026. Management noted it will continue to evaluate opportunistic debt repurchases and will look at implementing a share buyback program in the future as it solidifies its balance sheet.
KSS YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $3.2B | $3.2B | −2.0% |
| Gross Profit | $1.2B | $1.2B | −2.3% |
| Operating Income | $46.0M | $60.0M | −23.3% |
| Net Income | −$14.0M | −$13.1M | +6.7% |
KSS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.