Kohl`s Corp
Q1 2027 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.04%.
Did KSS Beat Earnings? Q1 2027 Results
Kohl's delivered a stronger-than-expected first quarter for fiscal 2027, beating Wall Street on both the top and bottom lines and extending its EPS beat streak to four consecutive quarters. The retailer posted a loss of $0.13 per diluted share, well ahead of the consensus estimate of negative $0.19, a 31.54% positive surprise, while revenue of $3.17 billion exceeded the $3.03 billion estimate by 4.61%, even as total sales slipped 2.0% year-over-year. The key driver behind the outperformance was a meaningful improvement in inventory discipline and balance sheet health, with inventory down 8% to $2.90 billion and revolving credit borrowings reduced to zero from $545.00 million a year ago. Proprietary brands, which posted a 6% comp, and a surging Impulse category helped sustain gross margin at 39.9%. Shareholders also recently approved an expanded long-term compensation plan, signaling boardroom confidence in the company's trajectory. For the full year, Kohl's reaffirmed guidance calling for net sales flat to down 2% and adjusted diluted EPS of $1.00 to $1.60.
- Proprietary brands delivered a 6% comp in Q1
- Juniors business grew by 10% led by strength from So. Footwear
- Impulse business accelerated, running up over 50% in Q1
- Flat to slightly positive comps across Women's, Kid's, Home, Men's and Accessories businesses
- Gross margin expanded 4 basis points driven by higher proprietary brand penetration
- SG&A expense declined 1.6% from collective savings in credit and corporate expenses
- Inventory decreased 8% year-over-year to cleaner levels
- Interest expense decreased to $63 million from $76 million
“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
Forward Guidance & Outlook
Kohl's affirmed its full-year 2026 financial outlook: net sales and comparable sales expected to be flat to down 2% versus 2025; adjusted operating margin in the range of 2.8% to 3.4%; adjusted diluted EPS of $1.00 to $1.60; capital expenditures of $350 million to $400 million. The company declared a quarterly dividend of $0.125 per share payable June 24, 2026. Management indicated it will continue to evaluate the market for opportunistic debt repurchases and will look at implementing a share buyback program in the future as the balance sheet and business results improve.
KSS YoY Financials
Figures from SEC filings and company reports. Not investment advice.