Q3 26 EPS
$0.10
BEAT +155.77%
Est. $-0.18
Q3 26 Revenue
$3.58B
BEAT +6.14%
Est. $3.37B
vs S&P Since Q3 26
-33.1%
TRAILING MARKET
KSS -22.5% vs S&P +10.6%
Market Reaction
Did KSS Beat Earnings? Q3 2026 Results
Kohl's delivered a sharply positive earnings surprise in its fiscal third quarter of 2026, posting adjusted diluted EPS of $0.10 against a consensus estimate of negative $0.18, a 155.77% beat, while revenue of $3.58 billion cleared Wall Street's $3.3… Read more Kohl's delivered a sharply positive earnings surprise in its fiscal third quarter of 2026, posting adjusted diluted EPS of $0.10 against a consensus estimate of negative $0.18, a 155.77% beat, while revenue of $3.58 billion cleared Wall Street's $3.37 billion forecast by 6.14%, even as total revenue slipped 3.6% year-over-year. The standout driver behind the profit beat was gross margin expansion of 51 basis points to 39.6%, fueled by stronger proprietary brand penetration and disciplined inventory management that brought stock levels down 5% to $3.90 billion. Notably, revolving credit borrowings plummeted to $45 million from $749 million a year ago, a balance sheet improvement that underscores the operational discipline the newly permanent CEO Michael Bender has emphasized since taking the interim role in May. The results sparked a 26% single-session stock rally, though some analysts, wary of persistently declining comparable sales, maintained sell ratings, reflecting a broader debate about long-term strategy that echoes challenges seen across other consumer-facing companies. Kohl's raised its full-year 2025 outlook, now guiding for adjusted diluted EPS of $1.25 to $1.45.
Key Takeaways
- • Gross margin increased 51 basis points driven by greater proprietary brand penetration, category mix benefits, and strong inventory management
- • SG&A expense declined 2.1% from tightly managed expenses in stores, marketing, and fulfillment
- • Proprietary brands grew 1% in Q3
- • Positive growth in Juniors, Petites, and Accessories categories
- • Impulse queueing line rollout delivered over 40% sales growth in Q3
- • Inventory decreased 5% year-over-year reflecting strong inventory management
- • Borrowings under revolving credit facility decreased $704 million year-over-year
KSS YoY Financials
Q3 2026 vs Q3 2025, source: SEC Filings
“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.”
— Michael J. Bender, Q3 2026 Earnings Press Release
KSS Earnings Trends
KSS vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
KSS EPS Trend
Earnings per share: estimate vs actual
KSS Revenue Trend
Quarterly revenue: estimate vs actual
KSS Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 27 BEAT | $-0.19 | $-0.13 | +31.54% | $3.17B | +4.61% |
| Q4 26 BEAT FY | $0.84 | $1.07 | +26.66% | $5.17B | +1.99% |
| FY Full Year | $2.16 | $2.38 | +10.19% | $15.53B | +2.97% |
| Q3 26 BEAT | $-0.18 | $0.10 | +155.77% | $3.58B | +6.14% |
| Q2 26 BEAT | $0.30 | $0.56 | +87.98% | $3.55B | +5.27% |
| Q1 26 BEAT | $-0.22 | $-0.13 | +41.12% | $3.05B | -0.42% |