Kohl`s Corp
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.34%.
Did KSS Beat Earnings? Q4 2026 Results
Kohl's closed out fiscal Q4 2026 with a stronger-than-expected earnings beat that nonetheless left investors uneasy about the road ahead. The department store retailer posted adjusted EPS of $1.07, clearing the $0.85 consensus estimate by 25.70%, while revenue of $5.17 billion topped forecasts by 9.49%, though it still represented a 4.2% decline year-over-year as the company continued to lose ground during critical holiday shopping windows. The profit outperformance was driven largely by disciplined expense management, with SG&A expenses trimmed 4.9% and gross margin expanding 25 basis points to 33.1% on tighter inventory control and fewer clearance markdowns. Still, comparable sales slipped 2.8%, and CEO Michael Bender acknowledged the top line came in softer than internal expectations. For <a href="https://247wallst.com/investing/2026/02/20/these-3-popular-retailers-could-be-gone-by-christmas/">a retailer navigating real uncertainty</a>, the fiscal 2026 outlook of flat to down 2% in net sales, paired with adjusted EPS guidance of $1.00 to $1.60, did little to reassure the market, with shares falling roughly 10% following the release.
- Strong inventory management leading to reduced clearance markdowns
- SG&A expense declined 4.9% through tighter spending in stores, marketing, and fulfillment
- Gross margin expanded 25 basis points year-over-year to 33.1%
- Inventory decreased 7% year-over-year
- Digital penetration increased 220 basis points in Q4
- Credit expense shifted from SG&A to Other Revenue
“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
Forward Guidance & Outlook
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 projected at 2.8% to 3.4%, with adjusted diluted EPS in the range of $1.00 to $1.60. Capital expenditures are expected to be approximately $350 million to $400 million. The company declared a quarterly cash dividend of $0.125 per share. Management noted the macroeconomic environment includes tariff-related uncertainties. The company intends to resume share repurchases over the long term following an improvement in overall leverage.
KSS YoY Financials
Figures from SEC filings and company reports. Not investment advice.