MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--Kohl's (NYSE: KSS) today announced that Ryan M. Waymire has been named Chief Merchandising Officer, reporting to CEO Michael J. Bender, effective September 28. Waymire has 25 years of experience at large retailers including Walmart, Amazon and Target, most recently serving as SVP of Fashion at Walmart U.S. He has a proven record of transforming merchandise strategies for a broad customer base and driving results by balancing fundamental merchandising excellence with innovation.
In the role of Chief Merchandising Officer, Waymire will be responsible for Kohl's overall merchandise strategy and all merchandising functions, including buying, omnichannel merchandising, product design and development, allocation and planning, sourcing, and product portfolio strategy.
"I am thrilled to have Ryan join the team. As we intentionally build our business for the future, Ryan will take the next step with our merchandising teams in modernizing our overall product offering - with customers at the center of all decisions," said Bender. "Ryan has deep experience in understanding how to refresh and drive a merchandise strategy for a broad U.S. customer base, and he has an innovative way of integrating meaningful collaborations and social media influencers into product stories. He is an energetic and inspirational leader, with strong partner relationships, and I know he will be an excellent addition to our senior leadership team. He will hit the ground running with our teams."
"I'm excited to join Kohl's at a transformational moment for the company and for retail," said Waymire. "Throughout my career, I've focused on helping retailers and brands deliver what customers want and need while also inspiring them with stylish, high-quality products that bring joy to their lives. I look forward to helping shape Kohl's merchandising strategy and delivering differentiated products and experiences that surprise and delight customers across the country."
Waymire has deep merchandise, fashion, brand management, and progressive executive leadership experience at several large retailers including Walmart, Wayfair, FabFitFun, Amazon, and Target. Most recently, he was SVP of Fashion at Walmart U.S. Prior to that, he was GM, Brand President for BirchLane at Wayfair, SVP of Merchandising and Brand Partnerships at FabFitFun, and managed apparel and brand partnership at Amazon. Earlier in his career, he spent nearly a decade at Target in progressive buying, sourcing, and merchandising roles. Waymire has an MBA from Saint Louis University.
Waymire replaces Nick Jones, who has been serving as Kohl's Chief Merchandising Officer since 2023.
"Nick has played a key leadership role in driving our merchandise strategy, curating our national and private brand portfolio, and improving processes in the way we work," said Bender. "I want to thank Nick for his leadership and contributions to Kohl's. We wish him all the best in his next chapter."
Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as “will,” “believes,” “expects,” “may,” “should,” “could,” “intends,” “anticipates,” “estimates,” “plans,” or similar expressions to identify forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding executive leadership transitions and the Company’s strategic direction. Forward-looking statements are based on management’s then-current views and assumptions and, as a result, are subject to certain risks and uncertainties that could cause the Company’s actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company’s Annual Report on Form 10-K, in subsequent Quarterly Reports on Form 10-Q, and in other filings with the SEC, which are expressly incorporated herein by reference. Forward-looking statements relate only to the date initially made, and the Company undertakes no obligation to update them.
About Kohl’s
Kohl’s (NYSE: KSS) is a leading omnichannel retailer built on a foundation that combines great brands, incredible value and convenience for our customers. Kohl’s is uniquely positioned to deliver against its long-term strategy and its purpose to take care of families’ realest moments. Kohl's serves millions of families in its more than 1,100 stores in 49 states, online at Kohls.com, and through the Kohl's App. With a large national footprint, Kohl’s is committed to making a positive impact in the communities it serves. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com.
Kohl's (KSS.N) on Wednesday missed Wall Street estimates for second-quarter sales as muted spending on women's clothing and skincare products offset gains from the department-store chain's push to revitalize the business.
The company's shares, which had already fallen about 13% so far this year, dipped in volatile morning trading before paring back losses.
Despite growth in categories including home goods and youth apparel, CEO Michael Bender said that "we know there is more work to be done" to attract cash-strapped shoppers.
"We are operating in a challenging macroeconomic environment where our customers are experiencing persistent financial pressures from inflation in their everyday expenses like gas and food," Bender said in a post-earnings call. "We're bringing value everywhere we can."
Average transaction values declined slightly in the second quarter as low- and middle-income shoppers seek bargains, the company said.
U.S. consumer sentiment deteriorated in August and retail sales fell for the first time in nine months in July, underscoring an increasingly "selective" shopping trend among middle- and lower-income households, even as wealthier shoppers remain resilient.
Consumer caution around non-essential purchases has hurt retailers from Kohl's to off-price store operators like TJX (TJX.N).
Kohl's named Bender permanent CEO last November to boost the business after years of shrinking profit and loss of ground to Amazon and off-price competitors, including Ross Stores (ROST.O).
The retailer reported quarterly revenue of $3.32 billion, compared with analysts' estimate of $3.35 billion, according to data compiled by LSEG.
Its comparable sales fell 0.9% after dropping 4.2% a year ago.
"The fact that comparable sales remain in decline – the eighteenth consecutive quarter when they have dipped – does not convince us that Kohl's is a business in full recovery," said Neil Saunders, managing director of GlobalData, adding that Kohl's is still losing market share across major categories.
Kohl's, however, raised its annual profit forecast after benefiting from $150 million in tariff refunds received during the reported quarter and also said it would resume its roughly $100 million share repurchase program this year.
FOCUS ON BACK-TO-SCHOOL
Kohl's started offering its fall products in July to capitalize on back-to-school shopping, Bender said.
The company said it plans to stick with its strategy of bringing seasonal inventory to shelves earlier than usual through the holiday season.
Bender pointed to the under-$25 back-to-school assortment as an example of Kohl's focus on value.
Still, while Kohl's has improved its value appeal ahead of the school year, the department store chain has not yet established itself as a top-of-mind destination for parents, said Saunders of GlobalData.
Improvement in categories such as footwear and home goods is "still not delivering positive trends in the business overall," Goldman Sachs analyst Brooke Roach said in a research note.
The company's quarterly gross margin grew 305 basis points from last year to 43%, helped by tariff refunds.
Kohl's has also been targeting value-conscious shoppers by investing in its proprietary brands and adding more coupon-eligible labels, among other measures.
It expects fiscal-year 2026 adjusted earnings of $1.80 to $2.40 per share, above its prior forecast of $1.00 to $1.60 per share.
The company expects growth in annual net sales to be flat to a 1.5% fall, compared with its previous range of flat or a 2% decline.
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Kohl's (KSS - Free Report) came out with quarterly earnings of $1.28 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +132.73%. A quarter ago, it was expected that this department store operator would post a loss of $0.18 per share when it actually produced a loss of $0.13, delivering a surprise of +27.78%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Kohl's, which belongs to the Zacks Retail - Regional Department Stores industry, posted revenues of $3.52 billion for the quarter ended July 2026, missing the Zacks Consensus Estimate by 0.02%. This compares to year-ago revenues of $3.55 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Kohl's shares have lost about 13.4% since the beginning of the year versus the S&P 500's gain of 12.2%.
What's Next for Kohl's?While Kohl's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Kohl's was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $3.54 billion in revenues for the coming quarter and $1.38 on $15.38 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Regional Department Stores is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Macy's (M - Free Report) , is yet to report results for the quarter ended July 2026. The results are expected to be released on September 10.
This department store operator is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -9.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Macy's' revenues are expected to be $4.82 billion, up 0.2% from the year-ago quarter.
Kohl's posted a blowout earnings beat and raised its full-year outlook, yet shares are cratering while rivals Ross and TJX barely flinch. The reason buried inside the margin numbers may explain why investors are refusing to celebrate.
Kohl’s (NYSE:KSS | KSS Price Prediction) is delivering a strong-on-paper quarter Wednesday. Yet, investors are treating the report as a warning that the profit beat leans heavily on a one-time tariff refund rather than a durable rebound in demand.
The State Street SPDR S&P Retail ETF (NYSEARCA:XRT) is up 0.1% to $87.99, holding steady as the sector digests a wave of tariff-refund quarters. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.1% to $764.94, isolating today’s action to a single-name story.
Kohl’s stock is down 6% to $16.65 in early Wednesday trading, extending a slide that had left shares down 12% year to date through Tuesday’s close. Meanwhile, Ross Stores (NASDAQ:ROST) stock is up 0.1% to $241.50 after its own tariff-boosted quarter last week. TJX Companies (NYSE:TJX) stock is down 0.5% to $138.80, while Macy’s (NYSE:M) stock is flat at $22.60.
Tariff Refund Powered the Margin Beat Kohl’s reported adjusted diluted EPS of $1.28 against a $0.57 consensus, on revenue of $3.52 billion that ran ahead of the $3.4 billion expected. The company’s gross margin expanded 305 basis points to 43%, and operating income rose to $261 million. The heart of the story sits inside those margin numbers. Kohl’s disclosed $150 million of tariff refunds in the quarter, of which $100 million flowed through gross margin. Strip that benefit out, and much of the margin expansion goes with it. Kohl’s net sales decreased 0.9% to $3.3 billion, with comparable sales also down 0.9%. CEO Michael Bender stated, “Our second quarter results reflect the ongoing progress against our initiatives, leading to another improvement in our comparable sales trend.” The reaction in Kohl’s stock suggests investors want to see that trend hit positive before crediting the company for a turnaround.
Peer Comps Show What Kohl’s Is Missing Ross Stores reported comparable store sales up 10%, its second consecutive quarter of double-digit comp growth, on revenue of $6.26 billion and adjusted EPS of $2.66 versus a $1.94 consensus. The chain also received $253 million in tariff refunds worth $0.60 per share. However, Ross Stores’ operating margin expanded 205 basis points even excluding that benefit.
TJX posted a 4% consolidated comp increase, led by HomeGoods and TJX International each up 7% and TJX Canada up 6%. The company raised full-year adjusted EPS guidance to $5.15 to $5.20 and lifted its long-term global store target to 7,500 stores. Its $331 million of tariff refunds is broken out separately from adjusted results.
Macy’s most recent quarter delivered 3% comparable sales growth across all three nameplates, with Bloomingdale’s up 10.2%. Every peer in this cohort produced organic comp growth. Kohl’s did not.
Raised Outlook and Buyback Restart Kohl’s raised its full-year 2026 guidance, now calling for net sales and comparable sales down 1.5% to flat, adjusted operating margin of 3.5% to 4%, and adjusted diluted EPS of $1.80 to $2.40. Capital expenditures are pegged at $350 million to $400 million.
The retailer is restarting share repurchases of up to $100 million in 2026 under an existing $3 billion authorization, and declared a $0.125 quarterly dividend on August 18, payable September 23 to shareholders of record September 9. Kohl’s cash and equivalents climbed to $821 million against $174 million a year earlier.
The balance sheet is real and improving. The demand picture still looks fragile. Investors appear to be pricing the second half of that story more heavily than the first.
What to Watch Kohl’s is hosting its Q2 2026 earnings conference call starting at 9:00 a.m. ET today, and management commentary on traffic, promotional cadence, and future tariff-refund timing could shift sentiment before the close. The retail ETF’s near-flat action argues that today’s decline is a verdict on Kohl’s execution rather than a sector event.
Traders may want to keep an eye on whether Kohl’s guide can hold without repeat refund tailwinds through the back half. Given the reliance on one-time items and continued negative comps, moderate position sizing looks appropriate for their exposure until organic comp growth appears.
Contact [email protected] for any questions or corrections.
Kohl's (KSS - Free Report) reported $3.52 billion in revenue for the quarter ended July 2026, representing a year-over-year decline of 0.9%. EPS of $1.28 for the same period compares to $0.56 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.52 billion, representing a surprise of -0.02%. The company delivered an EPS surprise of +132.73%, with the consensus EPS estimate being $0.55.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Kohl's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Number of stores - Total: 1,151 compared to the 1,152 average estimate based on four analysts.Comparable store sales - YoY change: -0.9% compared to the -0.5% average estimate based on four analysts.Revenue- Net sales: $3.32 billion compared to the $3.33 billion average estimate based on four analysts. The reported number represents a change of -0.9% year over year.Revenue- Other revenue: $197 million versus $186.34 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -1% change.View all Key Company Metrics for Kohl's here>>>
Shares of Kohl's have returned -7.4% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Kohl's Corporation (NYSE:KSS) raised its full-year profit forecast on Wednesday after second-quarter earnings crushed Wall Street estimates, helped by roughly $150 million in tariff refunds and a sharp jump in gross margin.
The retailer posted adjusted earnings of $1.28 per share, more than double the 57-cent estimate analysts had projected, while revenue of $3.515 billion also topped forecasts of $3.345 billion.
Net sales fell 0.9% from a year earlier, marking the 18th consecutive quarter of negative comparable sales, though the pace of decline has continued to narrow. Gross margin climbed 305 basis points to 43%.
Kohl's now expects full-year adjusted earnings per share of $1.80 to $2.40, up from its prior range of $1 to $1.60 and above the $1.43 analysts had estimated. The company also lifted its sales guidance to a range of $15.294 billion to $15.527 billion, compared with estimates of $14.891 billion.
The retailer said it is restarting share buybacks, with plans to repurchase up to $100 million this year under its existing $3 billion authorization.
Kohl's cash position strengthened to $821 million, while long-term debt declined $195 million from a year earlier.
Shares of Kohl's ticked up 0.6% following the report.
MarketBeat Week in Review – 06/01 - 06/05Kohl's NYSE: KSS reported a 0.9% decline in comparable sales during its second quarter of fiscal 2026, an improvement from earlier trends, as the retailer highlighted gains in proprietary brands, Kohl's Card sales, home, toys and digital. The company also raised its full-year outlook after receiving approximately $150 million in tariff refunds.
Chief Executive Officer Michael Bender said the quarter represented “another improvement in our comparable sales trend,” while operational discipline in expenses and inventory management strengthened the retailer's balance sheet and cash generation. He said Kohl's continues to serve consumers facing pressure from inflation in everyday costs such as gas and food, increasing the importance of value, relevant assortments and convenient shopping experiences.
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Kohl's Stock Soars After Better-Than-Feared QuarterFor the second quarter, Kohl's posted net income of $151 million, or $1.28 per diluted share. Year-to-date net income totaled $137 million, or $1.18 per diluted share. Chief Financial Officer Jill Timm said gross margin improved 305 basis points in the quarter, though roughly $100 million of the tariff refunds benefited cost of merchandise sold. Excluding the tariff effect, gross margin would have increased about 5 basis points, in line with the company's guidance.
Sales Trends Improve Across Key Categories Store sales declined 2% in the quarter, while digital sales increased 2.8%. Kohl's Card sales rose more than 1%, continuing a recovery that management attributed to targeted efforts to reengage loyalty customers as well as the return and expansion of categories and proprietary offerings. Timm said credit revenue, which declined 1% in the quarter, is now expected to track more closely with the company’s top-line performance rather than lag it.
Dillard’s Posted a Huge Earnings Beat—So Why Did the Rally Fade?Proprietary-brand sales increased 3%, supported by higher inventory depth and customer response to Kohl's value-oriented brands. However, management said women’s proprietary-brand performance was constrained after stronger-than-expected early-quarter sell-throughs left the company unable to replenish inventory quickly enough. Kohl's pulled forward fall receipts and made a larger inventory investment for the back half of the year.
Among categories, home delivered 1% sales growth, led by decor and small electrics. The company cited strength in brands including Shark, Ninja, KitchenAid and GreenPan. Kids was flat, though toys grew at a double-digit rate, driven by Lego, KPop Demon Hunters and value-focused toy displays. Juniors increased 10%, led by the SO brand and new product introductions.
Accessories were flat overall, but increased by the mid-single digits excluding Sephora at Kohl’s. Jewelry rose by the mid-single digits, and Kohl's plans to add 350 fine-jewelry case lines in the fourth quarter, bringing the total to 549 stores. It will also install elevated fashion-jewelry fixtures in 320 stores by November.
Sephora at Kohl’s sales declined 4%. Bender said expanded distribution of several major brands pressured results, while newer brands have not yet reached enough scale to offset those declines. Kohl’s expects the softer Sephora performance to continue through the rest of the year, although it plans new launches across fragrance, haircare and skincare, as well as holiday outposts in 130 stores.
Inventory, Marketplace and Customer Experience Initiatives Inventory declined approximately 3% from a year earlier, while receipts increased 7% in the quarter to support categories such as toys, jewelry and juniors. Kohl's reduced choice count by the mid-teens while increasing inventory depth by the mid-single digits. The company expects year-end inventory to be down by low single digits.
Kohl's Marketplace grew 88% year over year in the second quarter. Timm said that including Marketplace gross merchandise value, comparable sales would have declined only 0.2%, rather than 0.9%. The retailer is more than doubling its marketplace product and vendor selection this year to expand category coverage, address inventory gaps and support seasonal demand.
The company is also investing in its store and digital experiences. Store pickup now represents more than 20% of digital demand, while Kohl’s expanded same-day delivery through Instacart and launched a DoorDash partnership in July. Management said customers using its AI shopping assistant are showing higher conversion and revenue per visit, though adoption remains small.
Kohl’s said it is modernizing its digital platform, with most core customer journeys now moved to the new system. It also plans to add Klarna payment options ahead of the holiday season.
Capital Allocation and Raised Outlook Kohl's ended the quarter with $821 million in cash and cash equivalents and no borrowings under its asset-based lending facility. Timm said the company’s net cash position improved by more than $700 million from a year earlier.
The retailer repurchased $63 million of long-term debt during the quarter at a $6 million discount. Year to date, it has repurchased $113 million of debt at a $15 million discount. Kohl’s expects operating cash flow of roughly $950 million to $1 billion for the year and capital expenditures of $350 million to $400 million.
The company resumed share repurchases for the first time since 2022, planning to buy back approximately $100 million of stock in 2026 under its existing $3 billion authorization. It also returned $14 million through its quarterly dividend during the second quarter.
Comparable sales guidance: down 1.5% to flat versus 2025 Adjusted operating margin guidance: 3.5% to 4% Adjusted diluted EPS guidance: $1.80 to $2.40, including about $0.65 from tariff refunds Timm said the updated outlook excludes any future tariff refunds. The company plans to use the current refund proceeds to support value-oriented pricing, opening-price-point proprietary brands, media spending and store staffing.
Kohl’s also announced leadership changes, including the appointment of Elliott Rodgers as chief operating officer effective Sept. 9 and Arian Parisi to the newly created role of chief customer officer.
About Kohl's (NYSE:KSS)Kohl's Corporation, founded in 1962 by Maxwell Kohl and headquartered in Menomonee Falls, Wisconsin, is a leading American department store retailer. The company operates approximately 1,100 stores across 49 states, offering a combination of value-oriented pricing, private-label brands and national labels. Since its initial public offering in 1992, Kohl's has focused on broadening its product assortment and enhancing the in-store and online shopping experience.
The retailer's merchandise portfolio spans apparel, footwear, accessories, and beauty products for women, men and children, as well as home goods, kitchenware and seasonal décor.
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Kohl's remains a deep value play, with shares up 25% over the past year despite ongoing sales challenges and volatile trading. Adjusted for one-time tariff refunds, Q2 EPS and gross margins were flat, with same-store sales down 0.9% and inventory tightly managed. KSS's focus on proprietary brands and expense control supports margins, while elevated leverage (3.6x) and a bloated store count remain concerns.
Kohl's sales continue to slip as its shoppers continue to face household budgetary pressures. The department store chain reported quarterly earnings Wednesday (Aug. 26) showing a 0.9% decrease in both net and comparable sales, marking the 18th straight quarter in which Kohl's has seen revenues decline.
Key Takeaways Kohl's Q2 adjusted EPS rose 128.6% to $1.28, beating the 55-cent consensus estimate.Gross margin expanded 305 bps to 43%, helped by about $100 million of tariff refunds in merchandise costs.KSS raised FY26 adjusted EPS outlook to $1.80-$2.40 and operating margin to 3.5-4%. Kohl's Corporation (KSS - Free Report) posted adjusted earnings of $1.28 per share in the second quarter of fiscal 2026, up 128.6% from 56 cents a year ago. The figure beat the Zacks Consensus Estimate of 55 cents per share.
Total revenues fell 0.9% year over year to $3,515 million and narrowly missed the consensus estimate of $3,516 million. The company’s net sales fell 0.9% to $3,318 million, while other revenues fell 1% to $197 million. Comparable sales were down 0.9% year over year. We expected comparable sales to decrease 0.9%.
Kohl’s Quarterly Margin HighlightsThis Zacks Rank #2 (Buy) company’s gross margin expanded 305 basis points year over year to 43%. Kohl's received about $150 million of IEEPA tariff refunds during the quarter, with roughly $100 million benefiting cost of merchandise sold. A portion of the refund was also recorded as a reduction of inventory, shared with vendors and invested to deliver greater value to customers.
SG&A expenses declined 0.9% to $1,188 million and remained flat at 33.8% of total revenues. We anticipated SG&A expenses to be 33.7% of total revenues.
Operating income decreased to $261 million, down from $279 million in the prior year. Operating margin was 7.4%, reflecting a decrease of 45 bps year over year.
KSS’ Financial Health Snapshot & Other UpdatesKSS ended the quarter with $821 million in cash and cash equivalents, up from $174 million a year earlier. Merchandise inventories declined 3% to $2,913 million, while long-term debt fell to $1,325 million from $1,520 million. The company also had no borrowings under its revolving credit facility at quarter-end.
For the first six months, net cash provided by operating activities was $478 million compared with $506 million a year ago. Free cash flow rose to $332 million from $306 million, while adjusted free cash flow increased to $288 million from $270 million.
The company is restarting share repurchases of up to $100 million in 2026 under its existing $3 billion authorization.
On Aug. 18, 2026, Kohl’s declared a quarterly cash dividend of 12.50 cents per share, payable on Sept. 23, to its shareholders of record as of Sept. 9.
What to Expect From KSS in FY26?Kohl's now expects fiscal 2026 net sales and comparable sales to range from flat to down 1.5%, compared with its prior outlook for a decline of up to 2%. Adjusted operating margin is projected at 3.5-4%, up from the earlier forecast of 2.8-3.4%, while adjusted earnings are forecasted at $1.80-$2.40 per share, compared with the previous outlook of a $1.00-$1.60 range.
The company’s shares have gained 33% in the past three months compared with the industry’s growth of 12.3%.
Image Source: Zacks Investment Research
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The Zacks Consensus Estimate for Target’s current financial-year sales and EPS indicates growth of 4.6% and 37.7%, respectively, from the year-ago reported numbers. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States and currently holds a Zacks Rank #2. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 15.1% and 36.7%, respectively, from the year-ago reported numbers.
Dollar General Corporation (DG - Free Report) is one of the largest discount retailers in the United States, selling low-priced merchandise, typically $10 or less. The company currently has a Zacks Rank of 2. DG delivered a trailing four-quarter earnings surprise of 21%, on average.
The Zacks Consensus Estimate for Dollar General’s current financial-year sales and EPS is expected to rise 3.9% and 7.6%, respectively, from the year-ago reported figures.
Four retailers reported Wednesday morning. All four beat expectations and raised guidance.
Yet a meaningful share of those profits arrived not from selling more to shoppers, but from a Supreme Court decision.
That is the single most important thing investors need to understand about this retail earnings season. The headline numbers look terrific. The underlying businesses are considerably more mixed. Both things are true at once, and telling them apart is now the whole job.
The $166 Billion DistortionWhen the Supreme Court struck down the IEEPA tariffs on February 20th, it triggered one of the largest corporate cash windfalls in recent memory. Roughly $166 billion had been collected from some 330,000 importers, and approximately $100 billion had been refunded as of July 31st. Retailers are booking those refunds now, and the amounts are enormous and wildly uneven:
Image Source: Zacks Investment Research
Walmart’s is the largest disclosed by any U.S. company. Lowe’s, at $80 million, received roughly one-ninth of what Home Depot did. That unevenness is precisely why cross-retailer margin comparisons this quarter are close to meaningless unless you normalize for it.
Abercrombie Shows Exactly How Much It MattersAbercrombie & Fitch (ANF - Free Report) deserves credit for the cleanest disclosure of the season. The company reported record second-quarter net sales of $1.27 billion, up 5%, and earnings of $4.17 per diluted share against a Zacks Consensus Estimate near $1.95. On its face, that translates to a 114% beat.
Except management specified that the IEEPA refund contributed approximately $100 million pre-tax, or $1.75 per diluted share. Back that out and underlying EPS is roughly $2.42 — still a genuine beat of about 24%, but a fundamentally different number.
The margin math tells the same story. Operating margin of about 20% included roughly 790 basis points from the refund. Ex-refund, it lands near 12% against 17.1% a year ago. And comparable sales were flat. Record revenue came from new stores and new geographies, not from existing stores selling more. Still, the stock soared more than 30% in early trading on Wednesday morning.
Image Source: StockCharts
One Retailer Didn’t Need the HelpWilliams-Sonoma (WSM - Free Report) was the standout, and for the right reasons. Comparable brand revenue rose 6.2%, accelerating from 4.8% last quarter, with total revenue up 6.7% and every brand positive. Management raised its full-year outlook. Non-GAAP EPS of $2.10 topped the $2.05 consensus.
That result is genuinely surprising. Home furnishings should be suffering alongside the home-improvement retailers, where Home Depot managed a 1.7% comp and Lowe’s just 0.2%. Williams-Sonoma is instead compounding, which argues the affluent consumer remains healthy and that execution can overcome a frozen housing market.
Kohl’s (KSS - Free Report) beat handily on earnings, with EPS of $1.28 against roughly $0.55 expected, improved free cash flow margin, and raised guidance. Operating margin was flat year over year at 7.4% and the top line is still shrinking — investors read the beat as cost control, not demand recovery.
Bath & Body Works (BBWI - Free Report) beat and raised despite net sales declining 2.3% to $1.51 billion, with adjusted EPS of $0.62 and operating income up to $216 million from $157 million. Management was refreshingly blunt: “Underlying business trends remain pressured.”
What the Consumer Data Actually SaysThe macro releases framing these results point in the same direction. Tuesday’s Conference Board index fell to 89.4, its lowest since January, but the internals split sharply: the Present Situation Index rose 6.8 points to 121.2 — its first improvement in four months — while Expectations fell 5.8 points to 68.2, further below the level historically associated with recession risk.
Consumers feel better about today and worse about tomorrow. That is a precise description of defensive spending: keep buying, trade down, defer anything large.
Wednesday’s core PCE rose 0.2% month over month, in line with forecasts. On an annual basis, core hold near 3.3% against the Fed’s 2% target. Prices are still rising faster than consumers believe their incomes will.
The retail data corroborates it. Growth has shifted from price-led to volume-led — driven by units rather than inflation. Traffic is rising at the largest, cheapest operators while ticket has stalled almost everywhere: up 1.1% at Walmart, roughly flat at Target, and down 2.5% at Sam’s Club.
Bottom LineFor investors, three conclusions follow. First, normalize everything. Any Q2 retail margin or EPS comparison that ignores tariff refunds is measuring the refund, not the business.
Second, watch what retailers do with the money. Walmart is putting its $2.9 billion into price rollbacks across food, general merchandise, consumables, and fashion; Target has committed to continued price investment. That is competitively rational and margin-dilutive — meaning the windfall converts into future price cuts rather than future earnings. It also intensifies pressure on mid-tier retailers with no comparable lever.
Third, the durable winners are the ones that didn’t need the help. Williams-Sonoma’s accelerating comps and Sam’s Club’s 7% transaction growth reflect real demand. Abercrombie’s flat comps and Kohl’s shrinking top line do not.
The consumer here is employed, still spending, and increasingly disciplined — defensive, not fragile. That environment rewards scale, price authority, and genuine traffic growth. One-time refunds flatter a quarter. They don’t change the trend.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of KSS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Kohl's, McDonald's, and Walmart are all flashing the same warning sign, and it points to a crisis already swallowing half the country before most economists will admit it exists.
Half of Americans live paycheck to paycheck.
Low-end retailer Kohl’s (NYSE: KSS | KSS Price Prediction) announced good earnings. Comparable store sales and revenue each dropped less than 1%. That put revenue at $3.3 billion for the most recent quarter. EPS was slightly off at $1.34. The company lifted guidance. Kohl’s got $150 million from tariff refunds.
The trouble at Kohl’s and many other retailers could spread across the economy. It showed up in McDonald’s (NYSE: MCD) earnings and in Walmart’s (NYSE: WMT) as well. The low-income consumer is limping. Much of this is due to gas prices. But it goes deeper. Inflation isn’t gone and, in many cases, wages aren’t keeping up.
They call the problem a K-shaped recovery. The problem is that upper-income people with money to spend cannot carry the entire US economy. If the lower- and middle-income parts buckle enough, GDP suffers. Most of it is based on consumer spending.
Gas is not the only thing that will drag consumers down. Diesel prices are up over 40% year over year. That price gets passed on to companies that rely on trucks for freight. Trucks deliver about 70% of the freight shipped in the US. Blame the blockade of the Strait of Hormuz.
And blame the blockage for rising agricultural prices. Part of what transits the Strait is urea and ammonia, which are used to make nitrogen fertilizer. Farmer products become more expensive. That is also passed along to the consumer. Add all these up, and the consumer is in trouble, and that trouble will get worse.
Add McDonald’s and Kohl’s and Walmart together. A recession is already underway in the low-income part of the US economy.
Half of Americans live paycheck to paycheck.
Contact [email protected] for any questions or corrections.
Douglas A. McIntyre
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
Key Takeaways Kohl's trades below several benchmarks as management raised adjusted EPS guidance to $1.80-$2.40. Comparable sales fell 1.1% in Q1 and 0.9% in Q2, with full-year guidance from flat to down 1.5%. Cash rose to $821M as debt fell, but current-year earnings estimates dropped 7.6% over four weeks. Kohl's Corporation (KSS - Free Report) offers investors a clear trade-off. Valuation remains inexpensive against several benchmarks, while management has raised its earnings outlook and strengthened liquidity.
Comparable sales remain negative and recent earnings-estimate revisions have moved lower, leaving the second half as a key test for the recovery.
KSS Looks Cheap Against Several BenchmarksKSS has a forward 12-month price-to-earnings ratio of 12.85, below 13.74 for its Zacks sub-industry, 22.81 for the broader Zacks sector and 20.37 for the S&P 500. The discount gives the stock a clear relative-value argument.
Kohl's also carries a current-fiscal-year P/E of 8.97, a PEG ratio of 0.59 and a price-to-book ratio of 0.49. Still, the forward multiple sits above the stock's five-year median of 10.1, tempering the historical value case.
Kohl's Earnings Outlook Has Improved SharplyManagement lifted adjusted operating-margin guidance to 3.5%-4% from 2.8%-3.4% and raised adjusted earnings guidance to $1.80-$2.40 per share from $1.00-$1.60. The updated outlook includes the benefit of tariff refunds received in the second quarter.
Cost discipline can add leverage if sales stabilize. Selling, general and administrative expenses declined 1.3% in the first six months, interest expense fell to $126 million from $154 million and quarter-end inventory was down 3% year over year.
KSS Sales Trends Still Argue for CautionNet sales declined 1.2% in the first six months, while comparable sales fell 1.1% in the first quarter and 0.9% in the second. Full-year guidance still calls for net sales and comparable sales to range from flat to down 1.5%.
Macy's, Inc. (M - Free Report) offers a relevant department-store comparison. Macy's comparable sales increased 3% in its first quarter of 2026, and the company raised full-year comparable-sales guidance to 0.5%-1.2%.
Target Corporation (TGT - Free Report) provides a broader retail benchmark. Target's second-quarter comparable sales rose 3.8%, driven by a 3.6% increase in traffic, and it now expects full-year net sales growth around 5%.
Kohl's Balance Sheet Adds Strategic FlexibilityKohl's ended the second quarter with $821 million in cash and cash equivalents, up from $174 million a year earlier. Long-term debt fell to $1.33 billion from $1.52 billion, and revolver borrowings were zero at quarter-end.
Kohl's Corporation Total Long Term Debt (Quarterly)Kohl's plans $350-$400 million of capital expenditures, is maintaining an annual cash dividend of 50 cents per share and is restarting share repurchases of up to $100 million in fiscal 2026. It also repurchased $113 million of debt in the first six months at a $15 million discount.
KSS Estimate Revisions Complicate the Bull CaseProjected earnings growth for the current fiscal year is 23.5%, supporting the earnings-recovery argument. The direction of recent estimate changes is less favorable.
The current-fiscal-year earnings estimate declined 8.5% over the past week and 7.6% over the past four weeks. That contrast keeps the outlook mixed even after management raised its own guidance.
KSS Signals Favor Value Despite Mixed MomentumThe bottom line is that KSS has enough support to keep the buy case alive, but the sales recovery still requires confirmation. Better earnings guidance and liquidity support the case, while negative comparable sales and recent estimate cuts limit conviction.
KSS currently carries a Zacks Rank #1 (Strong Buy), along with a VGM Score of A, Value Score of A, Growth Score of B and Momentum Score of C. The Rank and A/B Style Scores are favorable signals, especially for value and growth, while the C Momentum Score is less supportive. The combination argues for measured optimism rather than treating the recovery as fully established. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Kohl's shares rose 15.6% in three months as Q2 adjusted EPS jumped 128.6% to $1.28. Proprietary brands grew comparable sales 3%, while Home, Toys and Footwear also improved. Cash rose to $821M and debt fell, but Q2 comparable sales still declined 0.9%. Kohl's Corporation (KSS - Free Report) shares have gained 15.6% over the past three months, outpacing the Zacks sub-industry's 4.7% advance and the S&P 500's 1.6% rise.
The rebound has support from a sharp earnings beat, broader merchandising improvement and stronger liquidity. Still, negative comparable sales and recent estimate cuts leave an important test for the second half.
KSS Rally Coincides With a Strong Q2 BeatKohl's reported adjusted earnings of $1.28 per share for the second quarter of fiscal 2026, up 128.6% from 56 cents a year earlier and well above the Zacks Consensus Estimate of 55 cents.
Total revenues declined 0.9% to $3.52 billion, underscoring the gap between earnings improvement and the top line. Gross margin expanded 305 basis points to 43%, although about $100 million of tariff refunds benefited cost of merchandise sold.
Kohl's Merchandising Gains Broaden Beyond One CategoryProprietary brands generated 3% comparable-sales growth, with key brands outperforming in Juniors, Men's and Kids. Home posted positive comparable sales, Toys delivered double-digit growth and Footwear improved about 500 basis points sequentially.
Management is reducing apparel choice counts by a mid-teens percentage while rebuilding inventory depth and refining allocation. The aim is to simplify assortments, improve in-stock consistency and put inventory where demand is stronger.
KSS Cash and Debt Trends Improve Financial FlexibilityCash and cash equivalents reached $821 million at quarter-end, up from $174 million a year earlier. Long-term debt declined to $1.33 billion from $1.52 billion, while revolver borrowings fell to zero.
Free cash flow rose to $332 million from $306 million in the first six months. Kohl's plans $350-$400 million of capital expenditures, remains committed to a 50-cent annual dividend and is restarting share repurchases of up to $100 million in fiscal 2026.
Kohl's Sales Recovery Still Has to Prove ItselfComparable sales declined 0.9% in the second quarter after falling 1.1% in the first. Full-year guidance still calls for net sales and comparable sales to range from flat to down 1.5%, keeping the top-line recovery incomplete.
Macy's, Inc. (M - Free Report) reported 3% comparable-sales growth in its first quarter of 2026, its strongest first quarter in four years. Target Corporation (TGT - Free Report) reported 3.8% comparable-sales growth in its second quarter, including 3.6% comparable traffic growth. Those results show the competitive bar remains high as Kohl's works to restore positive demand.
KSS Valuation Leaves Room but Raises a Key QuestionKSS trades at 12.9X forward 12-month earnings, below the Zacks sub-industry's 13.7X, the sector's 22.8X and the S&P 500's 20.4X. That relative discount can support the value case.
The stock, however, trades above its five-year median of 10.1X. Investors therefore have to judge whether better earnings execution and financial flexibility justify paying more than Kohl's own recent historical norm.
KSS Signals Support Value More Than MomentumThe rebound has credible support, but sustainability still depends on converting better merchandising, cost control and liquidity into sustained comparable-sales improvement. With the stock already above its five-year median valuation, weaker traffic or seasonal execution could limit further upside.
KSS currently carries a Zacks Rank #1 (Strong Buy), along with a VGM Score of A, Value Score of A, Growth Score of B and Momentum Score of C. The favorable Rank and A/B Style Scores support the near-term case, particularly for value and growth-oriented investors, while the Momentum Score is less emphatic. The Zacks Consensus Estimate for current-fiscal-year earnings has declined 7.6% over the past four weeks, reinforcing the need to watch estimate trends alongside the operating recovery. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kohl's Q2 earnings beat and raised outlook lift the setup, but holiday execution and sales stabilization must prove gains can outlast tariff-refund benefits.
Kohl’s Corporation (NYSE:KSS) will release earnings for its second quarter before the opening bell on Wednesday, Aug. 26.
Analysts expect the company to report quarterly earnings of 57 cents per share, up from 56 cents per share in the year-ago period. The consensus estimate for Kohl’s quarterly revenue is $3.34 billion. It reported $3.35 billion last year, according to Benzinga Pro.
Ahead of quarterly earnings, JP Morgan analyst Matthew Boss, on Aug. 18, maintained Kohl’s with an Underweight rating and raised the price target from $15 to $17.
With the recent buzz around Kohl’s, some investors may be eyeing potential gains from the company’s dividends too. As of now, Kohl’s has an annual dividend yield of 2.84%, which is a quarterly dividend amount of 12.5 cents per share (50 cents a year).
To figure out how to earn $500 monthly from Kohl’s, we start with the yearly target of $6,000 ($500 x 12 months).
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Next, we take this amount and divide it by Kohl’s $0.50 dividend: $6,000 / $0.50 = 12,000 shares.
So, an investor would need to own approximately $211,200 worth of Kohl’s, or 12,000 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $0.50 = 2,400 shares, or $42,240 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
KSS Price Action: Shares of Kohl’s rose by 1.6% to close at $17.60 on Friday.
NEW YORK--(BUSINESS WIRE)--Following the successful debut of Martha Stewart's first-ever kitchen electrics collection in April 2026 exclusively on Amazon, Stewart is expanding her collection to Kohl's stores nationwide and Kohls.com, allowing shoppers to experience the assortment of thoughtfully designed kitchen electrics in person. Kohl's stores will offer a curated selection of products tailored to their customers. The full assortment will be available at Kohls.com. This exciting expansion pr.
Key Takeaways Kohl's Q2 revenues are expected to fall 0.9% to $3.52 billion amid cautious, value-focused spending.Weakness in Sephora, footwear and men's may have limited sales gains despite assortment changes.Cleaner inventories, proprietary-brand momentum and digital enhancements may have supported Kohl's results. Kohl's Corporation (KSS - Free Report) is likely to witness a top-line decline when it reports second-quarter fiscal 2026 earnings on Aug. 26. The Zacks Consensus Estimate for revenues is pegged at $3.52 billion, indicating a 0.9% decrease from the prior-year quarter’s reported figure.
The consensus mark for earnings has remained unchanged in the past 30 days at 56 cents per share, indicating flat year-over-year growth. KSS has a trailing four-quarter earnings surprise of 69%, on average.
Factors Likely to Influence KSS’ Q2 ResultsKohl’s has been navigating a difficult consumer backdrop, particularly among its core middle and lower-income shoppers, who remain pressured by a challenging macroeconomic environment. Discretionary spending remains tight and customers are increasingly value-focused and selective, which is likely to have weighed on overall sales in the quarter under review.
Category-specific softness is also likely to have weighed on Kohl’s second-quarter performance. Sephora’s mixed performance might have remained a headwind, as the business declined low single digits in the fiscal first quarter, with weakness in makeup and skincare partly offset by strength in fragrance and hair care. Although new products and brands were being introduced and rolled out, their contribution could take time to build, limiting the benefit to sales during the quarter.
Margins are likely to have remained under pressure from Kohl’s emphasis on delivering sharper value and supporting customer engagement through promotions and coupons. Management has noted that investments in value could offset benefits from cleaner inventories and a stronger proprietary-brand mix. Higher digital penetration has also carried incremental shipping costs, while transportation expenses might have added pressure. We expect gross profit to decline 2.1% year over year and gross margin to decrease 40 basis points in the second quarter.
Despite these headwinds, Kohl’s is likely to have benefited from improving execution, proprietary-brand momentum and omnichannel initiatives. The company entered the quarter with cleaner inventories, stronger apparel depth and improved in-stock positioning, while its proprietary brands had been resonating well with value-conscious shoppers. Digital enhancements, including improved product discovery and AI-powered shopping tools, alongside improving trends among Kohl’s Card customers, are also likely to have provided some support.
Earnings Whispers for KSS StockOur proven model doesn’t conclusively predict an earnings beat for Kohl's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Kohl's currently carries a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Burlington Stores, Inc. (BURL - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Burlington's upcoming quarter’s earnings per share is pegged at $2.18, which implies 37.1% growth year over year. The consensus estimate for the quarterly revenues is pinned at $3.02 billion, which indicates 11.8% growth from the figure reported in the prior-year quarter. BURL delivered a trailing four-quarter earnings surprise of 14%, on average.
Five Below, Inc. (FIVE - Free Report) currently has an Earnings ESP of +20.80% and a Zacks Rank #2. The consensus estimate for quarterly revenues is pegged at $1.21 billion, which indicates an increase of 17.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Five Below’s upcoming quarter’s earnings per share is pegged at $1.28, implying 58% year-over-year growth. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $94.46 billion, indicating a 9.6% rise from the figure reported in the prior-year quarter.
The consensus estimate for Costco’s earnings is pegged at $6.51 per share, implying 10.9% growth from the year-ago quarter. COST delivered a trailing four-quarter earnings surprise of 1%, on average.
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Kohl's?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Kohl's (KSS - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $0.63 a share five days away from its upcoming earnings release on August 26, 2026.
KSS has an Earnings ESP figure of +13.72%, which, as explained above, is calculated by taking the percentage difference between the $0.63 Most Accurate Estimate and the Zacks Consensus Estimate of $0.55. Kohl's is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
KSS is part of a big group of Retail and Wholesale stocks that boast a positive ESP, and investors may want to take a look at Murphy USA (MUSA - Free Report) as well.
Slated to report earnings on November 4, 2026, Murphy USA holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $8.39 a share 75 days from its next quarterly update.
Murphy USA's Earnings ESP figure currently stands at +1.12% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $8.30.
KSS and MUSA's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Analysts on Wall Street project that Kohl's (KSS - Free Report) will announce quarterly earnings of $0.55 per share in its forthcoming report, representing a decline of 1.8% year over year. Revenues are projected to reach $3.52 billion, declining 0.9% from the same quarter last year.
The current level reflects an upward revision of 40% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Kohl's metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts' assessment points toward 'Revenue- Other revenue' reaching $186.34 million. The estimate suggests a change of -6.4% year over year.
Based on the collective assessment of analysts, 'Revenue- Net sales' should arrive at $3.33 billion. The estimate suggests a change of -0.5% year over year.
It is projected by analysts that the 'Net sales by line of business- Accessories (including Sephora)' will reach $669.05 million. The estimate indicates a year-over-year change of -0.6%.
The consensus estimate for 'Net sales by line of business- Children's' stands at $325.91 million. The estimate indicates a year-over-year change of -2.7%.
The combined assessment of analysts suggests that 'Net sales by line of business- Footwear' will likely reach $288.37 million. The estimate points to a change of -4.2% from the year-ago quarter.
Analysts expect 'Net sales by line of business- Men's' to come in at $687.67 million. The estimate indicates a year-over-year change of -0.2%.
The consensus among analysts is that 'Net sales by line of business- Women's' will reach $945.08 million. The estimate points to a change of +0.2% from the year-ago quarter.
The average prediction of analysts places 'Net sales by line of business- Home' at $407.80 million. The estimate points to a change of +0.4% from the year-ago quarter.
Analysts predict that the 'Number of stores - Total' will reach 1,152 . The estimate is in contrast to the year-ago figure of 1,153 .
View all Key Company Metrics for Kohl's here>>>
Over the past month, Kohl's shares have recorded returns of -4.8% versus the Zacks S&P 500 composite's +2.8% change. Based on its Zacks Rank #2 (Buy), KSS will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Customers can save up to 40% on back-to-school must-haves Aug. 19–23 while earning Kohl's Cash to check off even more of the list
MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--The final weeks of back-to-school shopping are here, and Kohl's (NYSE: KSS) is bringing together some of the season's biggest savings in one event. During Kohl's Back-to-School Sale, Aug. 19–23, customers can save on back-to-school must-haves across apparel, shoes, backpacks, beauty, and dorm essentials—and earn Kohl's Cash® to put toward the next items on their list.
Save Now. Earn More for Later.
From classroom basics to college move-in, customers can save on select styles across nearly every back-to-school category during Kohl's Back-to-School Sale, including:
Up to 40% off shoes Up to 30% off jeans 30% off backpacks Up to 50% off school uniforms Up to 50% off back-to-college décor and storage Up to 50% off Sephora at Kohl's beauty favorites 25% off adidas Up to 20% off Nike shoes Customers can also earn $10 Kohl's Cash* for every $50 spent throughout the event. Plus, on August 22–23, Kohl’s will bring back its Kohl’s Cash Giveaway** with millions in Kohl’s Cash up for grabs in stores nationwide. Shoppers can receive $5 - $100 in Kohl’s Cash*** instantly, while supplies last.
Whether customers are shopping in stores, online, or need a last-minute item delivered, Kohl's is making back-to-school shopping easier than ever. Customers can now shop Kohl's nationwide through DoorDash, giving families another convenient way to get the essentials they need, right when they need them.
Turn Kohl's Cash Into More Back-to-School Must-Haves.
Families are looking for every opportunity to make their back-to-school budget go further. According to Deloitte's 2026 Back-to-School Survey, parents of K–12 students plan to spend an average of $557 per child this season. At Kohl's, spending that amount during an eligible Kohl's Cash earning event, could earn $110 in Kohl's Cash to put toward a future purchase during the applicable redemption period.
See How Far $110 in Kohl's Cash Can Go
From another wardrobe refresh to college move-in essentials, $110 in Kohl's Cash can go a long way. It could be put toward:
13 kids' Jumping Beans tees Two Nike backpacks and a Nike lunchbox Two pairs of Levi’s Jeans Two pairs of adidas tennis shoes College bed essentials from The Big One including comforter, sheet set and pillow Save Every Time You Shop.
Back-to-school savings don't end with this event. Customers can continue earning rewards and saving every time they shop at Kohl's through:
Kohl's Rewards****, Kohl's free-to-join loyalty program, where members earn 5% Rewards every day. Kohl's Card, which increases Rewards earnings to 7.5% on eligible purchases. For more information and to shop the Back-to-School Sale, visit Kohls.com/BackToSchool.
*Kohl's Cash® terms and exclusions apply. Not valid on Sephora at Kohl’s. Earn amount of Kohl's Cash® is approximate and may vary if additional coupons are applied to the purchase transaction. See coupon or ask an associate for details.
**NO PURCHASE NECESSARY. Open to legal residents of 50 US/DC, 18+. Cards available August 22 and 23, 2026. Cards are distributed in-person on a first-come, first-served basis starting at store opening, and only while supplies last. Limit 1 card per household. Kohl’s Cash® must be redeemed in-store on the same day. Kohl’s Cash® value varies between $5 and $100. Subject to Terms & Conditions. See store associate for T&Cs.
***PROMOTIONAL KOHL'S CASH® REDEEMABLE IN STORE ONLY FOR ONE TRANSACTION SAME DAY OF RECEIPT
Kohl's Cash® is not legal tender. No cash back. PROMOTIONAL KOHL'S CASH® REDEEM: Can be redeemed for one transaction during the stated redeem window with any other coupon; any unused amount will be forfeited. Limit of 1 per transaction. KOHL'S CASH® AND OTHER DOLLAR-OFF COUPONS WILL BE APPLIED PRIOR TO PERCENT-OFF TOTAL PURCHASE COUPONS. Kohl's Cash® may not be redeemed on (1) Sephora at Kohl’s merchandise; (2) Kohl's Cares® cause merchandise or other charitable items; (3) Gift Cards; (4) price adjustments; (5) payments to a Kohl's credit card or any third-party charge account; or (6) any services or fees, including taxes and shipping. RETURN VALUE OF MERCHANDISE PURCHASED WITH THIS PROMOTIONAL KOHL'S CASH® WILL BE SUBJECT TO ADJUSTMENT. RETURN KOHL’S CASH WILL NOT BE ISSUED UPON RETURN OF MERCHANDISE OR CANCELLATION OF ORDER. Nontransferable. See associate for details.
****Visit Kohls.com/Rewards for program details and terms and conditions.
About Kohl's
Kohl’s (NYSE: KSS) is a leading omnichannel retailer built on a foundation that combines great brands, incredible value and convenience for our customers. Kohl’s is uniquely positioned to deliver against its long-term strategy and its purpose to take care of families’ realest moments. Kohl's serves millions of families in its more than 1,100 stores in 49 states, online at Kohls.com, and through the Kohl's App. With a large national footprint, Kohl’s is committed to making a positive impact in the communities it serves. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com.
SAN FRANCISCO--(BUSINESS WIRE)--Between new class schedules, sports practices, and the scramble to find the right size backpack and outfits, back-to-school season is one of the busiest shopping moments of the year and one of the most time-consuming. Today, we're excited to welcome Barnes & Noble, Carter's, and Kohl's to the Marketplace, giving parents and students back the time they'd otherwise spend running between stores, with school clothes, supplies, classic and new reads, and everyday.
Kohl's Corporation continues to face earnings headwinds as department store traffic declines and macroeconomic pressures weigh on the sales outlook. The earnings setup going into KSS's Q2 report seems poor. Wall Street assumes a positive trend shift, which fundamentals don't seem to support. I estimate KSS stock to have -22% downside to $15.1.
Kohl's looks like a tough long-term bet. Sales are declining, margins are thin, and it is still burning cash, making meaningful shareholder growth hard to see.
Prediction markets have become a fast way to read the crowd’s odds on everything from elections to earnings beats. So when three of the most recognizable struggling consumer brands in the market are trading like distressed situations, the natural question is what Polymarket and Kalshi are pricing on their survival. The answer, as of this week, is telling: there are no active bankruptcy, delisting, or survival markets on any of the three names below. That silence, paired with what the actual balance sheets and share prices are doing, is itself informative.
Hertz: Deep Losses, No Crowd Bets on the Outcome Hertz Global (NASDAQ:HTZ) is arguably the most obvious candidate for a prediction-market survival contract. The rental car operator carries a market capitalization around $640 million, total debt of $18.7 billion, and a stockholders’ deficit of −$628 million as of its most recent filing. Cash on hand stood at $586 million, marginally higher year over year.
Yet on Polymarket and Kalshi, the crowd has nothing to say. According to prediction-market data pulled on August 7, 2026, Hertz has zero active markets on either platform. The only resolved contract in the dashboard, “Will Hertz (HTZ) beat quarterly earnings?” resolved No on May 7, 2026, after the crowd had priced Yes at an average 66.5% probability during trading. The crowd’s track record on Hertz stands at 0% correct with a Brier score of 0.442.
The tape has been ugly. Shares closed at $2.02 on August 6, 2026. Year to date, the stock is down 60.7%. On a one-year view, it is off 63.7%, and the five- and 10-year returns are −87.7% and −92.5%, respectively. A one-week bounce of 22.1% followed the latest earnings report.
That earnings report gave bulls something to point to. Q2 2026 revenue came in at $2.396 billion, up 9.66% year over year and beating estimates by 5.24%. Adjusted EPS of −$0.11 beat the −$0.2446 consensus, and revenue per unit hit $1,542, above the company’s $1,500 North Star target. CEO Gil West framed the quarter this way: “This quarter’s results reflect the disciplined execution of our strategy. Revenue increased 10% year over year despite operating with a 1% smaller fleet.”
Institutional posture is more cautious. Analyst ratings break down to six Holds and three Sells with no Buys, and discretionary insider selling has been exceptionally light over the past year. The composite sentiment score of 56.76 is neutral, with strong social sentiment (90) offsetting weak news sentiment (23.52).
Kohl’s: The Tape Points to Recovery Kohl’s (NYSE:KSS | KSS Price Prediction) is the name where the distress narrative fits least cleanly. Prediction markets are silent here too: zero active contracts on Polymarket or Kalshi, and no historical resolved markets to score the crowd on. But the fundamentals and the price action complicate the survival framing.
Shares closed at $18.45 on August 6, 2026. Over the past year, the department store operator is up 57.0%, and it has gained 9.2% over the past month. Year-to-date performance is still negative at −9.7%, and the five-year and 10-year figures are −65.2% and −53.1%. That is a stock in rebuilding mode.
The balance sheet backs that read. Q1 fiscal 2026 revenue landed at $3.167 billion, beating estimates by 4.61%. EPS of −$0.13 beat by 31.54%, the company’s fourth consecutive EPS beat. Comparable sales fell 1.1%, gross margin expanded to 39.9%, inventory was down 8% to $2.90 billion, and revolving credit borrowings were reduced to $0 from $545 million. Cash climbed 180.39% year over year to $429 million. CEO Michael Bender described the quarter as delivering the “best comparable sales performance in over four years.”
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Sentiment reflects the tension. The composite sentiment index reads 62.27, bullish with medium confidence, and the crowd’s implied price target of $28.49 sits well above the analyst consensus target of $17.85. Analyst ratings are mixed, and the P/E ratio of 8 is a value-territory print, though insider activity across 27 recent transactions nets to selling. Reaffirmed FY2026 guidance calls for adjusted diluted EPS of $1.00 to $1.60 on flat-to-down net sales.
WW International: Post-Bankruptcy, Post-Silence WW International (NASDAQ:WW) is the freshest distress case, having emerged from Chapter 11 in June 2025. If any of the three names should have a live Polymarket contract on survival or subscriber milestones, it would be Weight Watchers. There is none. Polymarket and Kalshi each show zero active markets, and the resolved-market scorecard is empty.
The stock has moved sharply anyway. Shares closed at $16.88 on August 6, 2026, gaining 9.5% in a single session and 21.4% on the week after earnings. Zoom out and the picture is harsher: down 42.2% year to date and 58.9% over the past year. The ten-year return is −37.5%.
Q2 2026 revenue was $162.3 million, down 14.2% year over year but ahead of estimates by 2.01%. GAAP EPS of $1.41 beat the $0.89 consensus, aided by an $11.16 million tax benefit and a $4.61 million gain on debt extinguishment after the company voluntarily prepaid its term loan at 68.5% of par. Clinical subscription revenue jumped 30.4% to $39.9 million, with clinical subscribers up 55.7% to 197,000. Behavioral subscription revenue fell 22.7% to $121.5 million, and total subscribers slipped 21.4% to 2.489 million.
The debt load remains heavy: a $424 million term loan at 10.53% interest against $101.5 million in cash. COO Jon Volkmann framed the year in transitional terms: “We view 2026 as a year of focused transition for Weight Watchers. Core+ posted sequential subscriber growth for the third consecutive quarter.” The company has no permanent CEO.
Sentiment reads 56.92, neutral with low confidence. Insider activity across 14 recent transactions nets to buying, a differentiator versus the other two names. The analyst target of $28.33 implies meaningful upside, while the P/E ratio of 2 reflects the outsized one-off gains flattering trailing earnings.
What the Missing Markets Say The common thread across all three names is the absence of active Polymarket or Kalshi contracts on survival, delisting, or bankruptcy outcomes. That absence itself carries information. Prediction markets need liquidity, retail interest, and defined resolution events to form. When a name is small-cap distressed but not high-profile enough to attract crowd betting, coverage vanishes and investors are left with the traditional signals: balance sheets, tape action, insider flow, and analyst posture.
On those signals, the three companies diverge. Hertz is running on a leveraged balance sheet with some insider selling and no crowd conviction either way. Kohl’s has strung together four straight EPS beats and a 57% one-year rally that fits a turnaround more than a distress case. Weight Watchers is post-bankruptcy, still cash-strapped, but the clinical GLP-1 business grew 30.4% and insiders are buying. Investors hoping prediction markets will fill the vacuum should monitor whether Polymarket volumes begin pricing the next earnings resolutions for any of the three, especially as Kohl’s next report and Hertz’s debt trajectory come into focus.
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MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--As families continue checking off items on their back-to-school shopping lists, Kohl's (NYSE: KSS) is making it easier to find everything they need without stretching their budgets. With great options for first-day outfits, backpacks, and dorm must-haves, customers can shop thousands of back-to-school styles and everyday essentials under $25 from the brands families know and love. Affordable Finds Across Every List From wardrobe staples starting at just $.
MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--Kohl's (NYSE: KSS) today announced that John Schlifske has informed the Kohl's Board (the "Board") that after nearly 15 years of service, he is retiring from the Board for personal reasons and is stepping down as Chair. The Board has unanimously elected Wendy Arlin to serve as the next Chair, effective immediately. Arlin has been a Director on Kohl's Board since 2023, and she has chaired the Finance and Audit Committees since May 2025. "On behalf of Kohl'.
Allspring Global Investments Holdings LLC boosted its position in shares of Kohl’s Corporation (NYSE:KSS – Free Report) by 372.2% in the first quarter, according to the company in its most recent filing with the SEC. The firm owned 49,451 shares of the company’s stock after acquiring an additional 38,978 shares during the quarter. Allspring Global Investments Holdings LLC’s holdings in Kohl’s were worth $637,000 at the end of the most recent reporting period.
Several other large investors have also added to or reduced their stakes in KSS. IFP Advisors Inc grew its holdings in shares of Kohl’s by 3,777.6% in the third quarter. IFP Advisors Inc now owns 1,900 shares of the company’s stock valued at $31,000 after purchasing an additional 1,851 shares in the last quarter. Farther Finance Advisors LLC lifted its holdings in Kohl’s by 233.9% during the 4th quarter. Farther Finance Advisors LLC now owns 1,666 shares of the company’s stock worth $34,000 after buying an additional 1,167 shares in the last quarter. iSAM Funds UK Ltd acquired a new stake in Kohl’s during the 3rd quarter worth approximately $39,000. Plato Investment Management Ltd purchased a new position in Kohl’s in the 4th quarter valued at approximately $42,000. Finally, Hantz Financial Services Inc. boosted its position in Kohl’s by 164.7% in the 4th quarter. Hantz Financial Services Inc. now owns 2,102 shares of the company’s stock valued at $43,000 after buying an additional 1,308 shares during the period. Hedge funds and other institutional investors own 98.04% of the company’s stock.
Analyst Ratings Changes A number of research analysts have recently commented on the company. Bank of America dropped their price objective on Kohl’s from $15.00 to $14.00 and set an “underperform” rating on the stock in a report on Friday, May 29th. UBS Group boosted their target price on Kohl’s from $8.00 to $9.00 and gave the stock a “sell” rating in a research note on Friday, May 29th. Gordon Haskett downgraded Kohl’s from a “buy” rating to a “hold” rating and set a $14.00 price target for the company. in a report on Friday, May 15th. Zacks Research downgraded Kohl’s from a “strong-buy” rating to a “hold” rating in a report on Monday, June 15th. Finally, Citigroup upgraded shares of Kohl’s from a “neutral” rating to a “buy” rating and increased their price target for the company from $14.00 to $22.00 in a research note on Monday, June 1st. One investment analyst has rated the stock with a Buy rating, eight have given a Hold rating and seven have assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Reduce” and a consensus price target of $15.31.
Get Our Latest Research Report on Kohl’s
Kohl’s Price Performance Shares of Kohl’s stock opened at $18.51 on Tuesday. The business’s fifty day moving average price is $16.53 and its 200 day moving average price is $15.98. Kohl’s Corporation has a twelve month low of $10.33 and a twelve month high of $25.22. The company has a current ratio of 1.48, a quick ratio of 0.31 and a debt-to-equity ratio of 0.93. The stock has a market capitalization of $2.10 billion, a P/E ratio of 7.84 and a beta of 1.40.
Kohl’s (NYSE:KSS – Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The company reported ($0.13) EPS for the quarter, topping the consensus estimate of ($0.18) by $0.05. Kohl’s had a return on equity of 4.67% and a net margin of 1.76%.The company had revenue of $3.17 billion during the quarter, compared to analyst estimates of $2.99 billion. During the same period in the prior year, the firm posted ($0.13) earnings per share. The firm’s revenue was down 1.7% on a year-over-year basis. Kohl’s has set its FY 2026 guidance at 1.000-1.600 EPS. As a group, research analysts anticipate that Kohl’s Corporation will post 1.36 earnings per share for the current year.
Kohl’s Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Wednesday, June 24th. Investors of record on Wednesday, June 10th were issued a $0.125 dividend. This represents a $0.50 annualized dividend and a yield of 2.7%. The ex-dividend date was Wednesday, June 10th. Kohl’s’s dividend payout ratio is currently 21.19%.
Kohl’s Profile (Free Report)
Kohl’s Corporation, founded in 1962 by Maxwell Kohl and headquartered in Menomonee Falls, Wisconsin, is a leading American department store retailer. The company operates approximately 1,100 stores across 49 states, offering a combination of value-oriented pricing, private-label brands and national labels. Since its initial public offering in 1992, Kohl’s has focused on broadening its product assortment and enhancing the in-store and online shopping experience.
The retailer’s merchandise portfolio spans apparel, footwear, accessories, and beauty products for women, men and children, as well as home goods, kitchenware and seasonal décor.
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MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--This back-to-school season, Kohl's (NYSE: KSS) is making shopping easier by focusing on the brands, styles, and sizes families need to start the school year off right. From national favorites like Nike and Levi's to By Kohl's brands such as SO, Tek Gear, FLX, and Jumping Beans, Kohl's combines the trends kids want with the quality and affordability parents expect, including thousands of products under $25. Kohl's is making it easier to shop with curated,.
Key Takeaways Kohl's juniors business grew 10% in Q1, led by strength from proprietary brand So.Proprietary brands posted a 6% comparable sales increase, supported by "By Kohl's" marketing.Kohl's plans to expand So. into more dress and casual categories through its office edit collection. Kohl's Corporation (KSS - Free Report) has been working to strengthen its merchandising strategy by refining assortments and placing a greater emphasis on proprietary brands. Early signs suggest those efforts are gaining traction in the juniors category, where the So. brand emerged as a standout performer during the first quarter of fiscal 2026.
The juniors business grew 10% in the quarter, led by strength from So. The performance contributed to flat to slightly positive comparable sales across the women's, kids', home and accessories businesses, making juniors one of the clearest areas of progress within the company's merchandising initiatives.
The momentum also aligns with Kohl's broader focus on proprietary brands, which delivered a 6% comparable sales increase during the quarter. The company continues to position these brands around quality products at affordable opening price points while supporting them through enhanced in-store presentation and its "By Kohl's" marketing campaign. Building on So.'s performance, Kohl's plans to expand the brand into additional dress and casual categories through its office edit collection.
The importance of So.'s performance is underscored by the broader operating backdrop. Company-wide comparable sales declined 1.1% in the quarter, indicating that the strength in juniors stood out against an overall business that remains under pressure.
While one quarter does not establish a long-term trend, the results suggest that Kohl's merchandising strategy is producing measurable gains in a category where it has invested in its proprietary offering. If the company can sustain the momentum in So. and successfully broaden the brand's assortment, the juniors business has the potential to become a more meaningful contributor to growth within the women's apparel portfolio.
How Walmart and Target CompareWalmart Inc. (WMT - Free Report) is seeing apparel momentum within a broader general merchandise recovery. In the first quarter of fiscal 2027, the company reported 4.1% comparable sales growth at Walmart U.S., supported by a 3% increase in transactions. WMT also noted that fashion stood out, delivering the category’s strongest share growth in five years. Walmart’s apparel progress is being driven by broader assortment improvements, expanded third-party offerings, marketplace growth and value positioning.
Target Corporation (TGT - Free Report) also delivered broad-based merchandise improvement. The company reported 6.7% net sales growth and 5.6% comparable sales growth in the first quarter of fiscal 2026, led by a 4.4% increase in traffic. Sales at TGT grew across all six core merchandise categories, while apparel and accessories sales rose to $3.85 billion from $3.71 billion. Target’s apparel growth reflects broader style, category and traffic-led initiatives.
KSS Stock Price Performance, Valuation & EstimatesShares of Kohl’s have surged 101.4% over the past year compared with the industry’s growth of 60.9%.
KSS Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, KSS trades at a forward price-to-earnings ratio of 13.61, lower than the industry’s average of 14.16.
KSS’ Valuation Compared to Industry
Image Source: Zacks Investment Research
Kohl's rose to its peak as a department store in the 2000s, with a focus on a strong in-store experience, coupons and rewards. Now, after years of stagnant sales and a rough patch on Wall Street, Kohl's is trying to get back to what made it a household name.
Kohl's was once a retail darling, carving out market share as a department store catering to the middle-income American consumer with coupons and deals that drove loyalty.
But over the past five years, Kohl's stock has lost nearly 70% of its value, plummeting as the retailer reported weak sales.
As department stores struggle to stay relevant and middle-income consumers face budget pressure, Kohl's is now trying to reinvigorate sales by leaning back into its core value proposition and investing in the store experience to ensure customers find what they need and keep coming back for more. Though Wall Street analysts believe the retailer has more work to do, investors have started to take notice: Kohl's shares have climbed more than 130% in the past year.
"For us, it's really about making sure that we are picking a lane," CEO Michael Bender told CNBC. "Sitting in the middle of the retail landscape like we do, selling the products like we do, that are admittedly more discretionary than others, means that you have to pick a lane and decide who you're serving, and that you understand that customer really, really well."
The company, which went public in 1992, saw its peak in the early 2000s as department stores gained traction around the U.S. Kohl's was known for its value, proprietary brands, coupons and Kohl's cash rewards, enjoying success along with other department store chains like Macy's and Bloomingdale's.
At its height, Kohl's commanded major market share, with its stock reaching an all-time high of $82 per share in late 2018 and the company reporting revenue of $20.23 billion for the fiscal year ended February 2019.
Kohl's 5 year chart
But soon after, the retailer began to lose traction. While department stores have broadly struggled during that time, Kohl's also faced specific issues that contributed to revenue declines.
"As a department store, they've kind of been struggling for a number of years," Chuck Grom, an analyst at Gordon Haskett, told CNBC.
Now, the company is working to stabilize its business, return to growth and win back a customer base that Bender said Kohl's never completely lost.
Losing its coreThrough changing its assortment, limiting coupon usage and leaning into off-price retail instead of proprietary brands, Kohl's "alienated" its core customers, forcing them to go elsewhere, Grom said.
Grom, who has been covering Kohl's for years, said the retailer went wrong when it leaned into being an off-price retailer.
"I think companies need to realize who their customer bases are and not try to become somebody they're not," he said. "I think too often retailers want to become what somebody else is, and that often can backfire on you."
It's a move that Bender said set Kohl's down the wrong path, leading to years of stagnant sales, declining foot traffic and "drifting" business strategies. The company saw rapid executive turnover and changes to its credit card and promotional offerings, which also came as it dealt with increased competition.
"We made some decisions where we took away categories, for example, petites and jewelry, we've spoken about that in previous earnings calls and other public discussions, those are categories, as an example, that are not substitutable," Bender said. "We stopped listening to the customer."
Kohl's paid the price. Wall Street lost confidence in the retailer, which posted quarter after quarter of slumping sales. At the same time, competitors like Walmart and T.J. Maxx were snatching up market share left behind by Kohl's, and online retailers such as Amazon were growing.
Winning over cost-conscious consumers hit by elevated inflation in recent years also became more difficult as more retailers put a premium on value.
"There always is this concern that can department stores actually grow for any meaningful period of time? There's lots of competition in terms of off-price specialty brands going direct-to-consumer," said Blake Anderson, an analyst covering Kohl's at Jefferies. "The space has really evolved over time, and I think the way that Kohl's has competed has been significantly tied to value, and so winning that customer based on value is becoming very difficult."
Sonia Lapinsky, managing director of retail at consulting firm AlixPartners, said a pressured consumer coupled with the fall of the traditional department store model meant the broader economy wasn't on Kohl's side, either.
"They're looking for options that are giving them their best bang for their buck," she said. "They want value, they want brands, they want the cheapest price they can get it. And there's a lot of compelling propositions out there from these other retailers."
Lapinsky added that priorities at Kohl's changed multiple times after the company's peak, which led in part to its decline.
"Over the years, we've seen a lot of shifting strategies at Kohl's, specifically whether they're getting into athletic and athleisure, or they're doubling down on fashion, or now they're growing private label, and it's a constant kind of shift of what the customer can expect when they walk into the store," Lapinsky told CNBC. "I think that's caused some confusion."
Turning the pageSince Bender took over as CEO in late 2025, he said he's been focused on returning to what always worked for Kohl's: proprietary brands, value, coupons and assurance customers will reliably find the products they want at the right prices.
"In those periods of time, Kohl's was known for taking care of families and making sure that there was assurance that what they were looking for, added value, was going to be available to them," Bender said. "Some of the restoration of that theme that made Kohl's great back then, we think is still relevant today. Customers want convenience."
In its most recent earnings report last month, Kohl's posted its best comparable sales growth in four years, even as it saw revenue decline. The retailer reported revenue of $3 billion, topping Wall Street estimates, and projected full-year net sales and comparable sales to be in a range of down 2% to flat.
At the time, Bender said the quarter marked Kohl's "knocking on the door of growth." The stock spiked 20% following the report.
Grom, the Gordon Haskett analyst, said he believes if Kohl's hadn't returned to its core identity, it would have been "problematic" for the retailer.
"I think their strategy actually makes a lot of sense right now," Grom said. "I think getting back to who they are is going to be important for their success."
Kohl's, which has traditionally catered to older shoppers, has also been trying to capture younger consumers, especially through its Sephora shop-in-shops, designed to draw Generation Z into the store.
Though the Sephora shops struggled slightly in the retailer's most recent quarter — with Bender saying on a call with analysts that the business "underperformed" and declined by a low-single digit percentage — it's historically delivered billions in sales and growing momentum.
"What's been a really interesting development for them is a creative use of their square feet and a way to try to drive not only sales, but new and younger customers," Anderson, the Jefferies analyst, said. "There's often some pushback on department stores, that they were established during a different generation and some of the customers do skew older, so ensuring they maintain relevancy for younger consumers is important."
Bender said the younger generation is "who we can grow with in the future," as Kohl's works to convert that customer to buy deeper in the store after coming in for Sephora.
Despite Kohl's progress, Wall Street may not be convinced yet that the company is making its return to being a household name.
In a June note, TD Cowen analysts wrote that they believe the company is "making the right strategic decisions" but rated the stock at hold due to underperformance in the apparel and footwear businesses.
"Kohl's remains a 'show-me' story, but results appear better than feared with [comparable sales]," the analysts wrote after the most recent earnings report. "We continue to view simplified promotions, rebalanced inventory and leveraging success in juniors as keys to the turnaround. On first look, progress in product and inventory is encouraging, though pressure on the core credit consumer and 'other revenue' remains a key question."
Lapinsky said because of its reputation for deals and promotions, Kohl's has to offer a strong value proposition in addition to a worthwhile in-store experience, which sets it apart from other retailers.
"They have to have a compelling product offering, they have to have the right prices, they have to have the product that consumers want to go into the store and to know that they're getting the best deal — that's really what the consumer is looking for, and that's where they've gone other places for," she said.
Lapinsky added that while Kohl's is clearly trying to improve its balance sheet and bottom line, the market will have to wait and see how it fares against rising competition as it tries to win back customers.
Still, Bender said while the signs toward recovery are encouraging, it's only the first step in a longer road into the "neighborhood" of growth.
"We have not arrived yet," Bender said. "I don't want anyone to feel like we planted that flag and said, 'We're done.' We're still in the early innings, quite honestly, but we are moving in a direction that is much more positive and aligned with a lot more clarity about the direction that we want to take the company."
Key Takeaways KSS shares rose 38.8% in three months, outpacing its industry, sector and the S&P 500.Kohl's posted its best comparable-sales performance in over four years in fiscal Q1. KSS faces pressured shoppers, tough competition and guidance for flat to down 2% sales. Kohl's Corporation (KSS - Free Report) has rallied 38.8% over the past three months, outpacing the industry, the broader Zacks Retail – Wholesale sector and the S&P 500’s respective gains of 10.3%, 5.1% and 14.2%.
The rally reflects improving investor confidence in Kohl’s turnaround efforts, including initiatives to enhance merchandise productivity, deepen customer engagement and strengthen profitability. Disciplined expense management, cleaner inventories, a healthier balance sheet and favorable earnings estimate revisions have further supported sentiment.
While macroeconomic pressures and intense competition remain concerns, improving operating trends suggest that investors are reassessing KSS’ risk-reward profile and evaluating whether the stock’s recent momentum can continue.
Image Source: Zacks Investment Research
Kohl's Benefits From Strategic InitiativesKohl's delivered its best comparable-sales performance in more than four years during the first quarter of fiscal 2026, signaling that management's strategic initiatives are beginning to resonate with customers. The company has focused on offering a more curated assortment, which helped drive flat-to-slightly positive comparable sales across key categories, including Women's, Kids', Home and Accessories.
A major contributor has been the strength of Kohl's proprietary brands. These brands posted a 6% comparable-sales increase in the first quarter, led by strong demand for labels such as FLX, Tek Gear and SO. The emphasis on exclusive brands mirrors a strategy that has helped retailers like Target Corporation (TGT - Free Report) differentiate their assortments and strengthen customer loyalty. For Kohl's, proprietary brands also support margins while enhancing its value proposition.
The company is also investing in digital and omnichannel capabilities. Kohl's recently launched an AI-powered gift finder using Google Gemini technology and continues to enhance digital navigation, product discovery and marketplace offerings. These efforts are designed to create a more seamless shopping experience and improve customer engagement across channels.
Kohl's progress is noteworthy given the highly competitive retail landscape. Unlike Walmart Inc. (WMT - Free Report) , which benefits from a large grocery business that drives recurring customer traffic, Kohl's remains more reliant on discretionary spending categories. Nevertheless, the retailer has improved inventory productivity, reduced costs and strengthened its balance sheet, all of which have helped bolster investor confidence.
Value remains another key pillar of the company's strategy. While The TJX Companies, Inc. (TJX - Free Report) attracts shoppers through its off-price treasure-hunt model, Kohl's is pursuing a different approach through proprietary brands, loyalty programs and targeted promotions. Combined with lower inventory levels, stable margins and debt reduction efforts, these initiatives have helped support the recent improvement in sentiment surrounding KSS.
Kohl's Faces Several Near-Term ChallengesDespite the recent progress, Kohl's continues to operate in a difficult consumer environment. Middle-income shoppers remain pressured by inflation and higher living costs, causing many consumers to prioritize essential purchases over discretionary spending. Given Kohl's exposure to apparel and home-related categories, fluctuations in consumer demand remain an important risk factor.
The company also faces intense competition across the retail landscape. Department stores, specialty retailers, mass merchants and off-price chains continue to invest heavily in pricing, merchandising and omnichannel capabilities. Maintaining market share while preserving profitability could become increasingly difficult if promotional activity intensifies across the sector.
Although trends are improving, the turnaround remains a work in progress. First-quarter net sales declined 1.7%, while comparable sales decreased 1.1%. Management also reaffirmed fiscal 2026 guidance, calling for net sales and comparable sales to range from flat to down 2%, suggesting that visibility into a sustained demand recovery remains somewhat limited.
KSS’ Estimate Revisions Signal Improving SentimentThe Zacks Consensus Estimate for Kohl's current fiscal-year earnings per share has increased 3.1% over the past seven days, while the estimate for the next fiscal year has risen 0.7%.
Image Source: Zacks Investment Research
Upward estimate revisions generally reflect growing confidence among analysts regarding a company's earnings outlook. The recent revisions suggest that Wall Street is becoming increasingly constructive on Kohl's ability to translate its operational improvements and cost-control efforts into stronger profitability.
Kohl's Valuation Remains AttractiveKSS is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 13.07, slightly below the Retail – Regional Department Stores industry average of 13.26. This modest discount makes the stock look reasonably attractive, particularly as Kohl’s operational trends improve and earnings estimates move higher.
Image Source: Zacks Investment Research
How Should Investors Play KSS Stock Right Now?Kohl's has made solid progress in merchandising, proprietary-brand expansion, inventory optimization, expense control and balance sheet improvement. Investments in digital capabilities and customer-experience enhancements also support its longer-term recovery prospects. However, uneven consumer spending, intense competition and conservative guidance suggest that execution risks remain. The recent rally reflects improving confidence in management's strategy, while positive estimate revisions and a reasonable valuation add support.
For now, KSS appears to be a developing recovery story. Investors may want to watch for sustained revenue stabilization and consistent earnings execution before turning more constructive on the stock. KSS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Kohl's proprietary brands posted a 6% comparable sales increase in the first quarter of fiscal 2026. Kohl's gross margin expanded 4 basis points to 39.9%, helped by higher proprietary brand penetration. FLX, Tek Gear and So showed strength, with Juniors up 10% and FLX expanding to Kids by June. Kohl’s Corporation (KSS - Free Report) is sharpening its focus on proprietary brands as a core element of its value proposition, with the category supporting merchandise margin in the first quarter of fiscal 2026.
Proprietary brands delivered a 6% comparable sales increase in the quarter, supported by customer demand for value-oriented offerings across categories. Kohl’s positions these brands as quality products offered at affordable opening price points, making them an important part of its merchandise mix.
The strength was visible across several businesses. Women’s, Kids, Home and Accessories posted flat to slightly positive comparable sales trends, while key proprietary labels such as FLX and Tek Gear showed strength across categories. Juniors was a standout, rising 10%, led by the So brand. Kohl’s is also expanding its proprietary brand presence, including the rollout of FLX to Kids in all stores by June.
The higher contribution from these brands showed up in profitability metrics. Gross margin expanded 4 basis points year over year to 39.9% in the first quarter, driven by higher proprietary brand penetration. However, the benefit was largely offset by increased shipping costs tied to higher digital penetration.
The key takeaway is that proprietary brands are giving Kohl’s a clearer margin-supporting lever while reinforcing its value and quality positioning. The first-quarter gain was limited by shipping pressure, but the 6% comparable sales increase shows that these brands are gaining traction where Kohl’s is leaning hardest.
How Are Target and Walmart Driving Margin Expansion?Target Corporation (TGT) is benefiting from a favorable sales and revenue mix. In first-quarter 2026, TGT’s gross margin rate expanded 80 basis points year over year to 29%, driven by supply-chain productivity improvements, growth in higher-margin revenue streams such as Roundel and Target Plus, and lower markdown rates, partly offset by higher product costs.
Walmart Inc. (WMT) is pursuing margin expansion through business and merchandise mix improvements. WMT’s gross profit rate rose 6 basis points to 24.3% in first-quarter fiscal 2027, led by Walmart U.S. Within Walmart U.S., the gross profit increased 29 basis points, supported by improved business mix and merchandise mix, partly offset by higher fuel costs. Walmart also continues to scale higher-margin areas such as advertising, marketplace and membership.
KSS Stock Price Performance, Valuation & EstimatesShares of Kohl’s have surged 114.1% over the past year compared with the industry’s growth of 69%.
KSS Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, KSS trades at a forward price-to-earnings ratio of 13, lower than the industry’s average of 13.32.
KSS’ Valuation Compared to Industry
Image Source: Zacks Investment Research
Key Takeaways Kohl's proprietary brands posted a 6% comparable sales increase in first-quarter fiscal 2026. Juniors sales rose 10%, led by SO, with LC Lauren Conrad, Sonoma, FLX and Tek Gear contributing. Kohl's plans more proprietary-brand inventory, in-store presentation and By Kohl's marketing support. Kohl’s Corporation (KSS - Free Report) is leaning more on its proprietary brands to strengthen value for budget-conscious shoppers. With consumers being selective on discretionary spending, the retailer is using exclusive labels to offer quality products at affordable opening price points. The strategy gained traction in first-quarter fiscal 2026, as proprietary brands delivered a 6% comparable-sales increase.
The performance was broad-based across key apparel categories and represented one of the brighter areas of the business during the quarter. Juniors led the way with a 10% sales increase, driven by strength in the SO brand. Other proprietary labels, including LC Lauren Conrad, Sonoma, FLX and Tek Gear, also contributed to results across multiple categories.
Private brands remain central to Kohl’s value-focused merchandising approach. Unlike national brands, these labels are exclusive to Kohl’s, allowing the company to offer customers a combination of affordability and differentiation. To build on the momentum, KSS plans to increase inventory investments in proprietary brands while enhancing in-store presentation and expanding awareness through its By Kohl’s marketing campaign.
The company is also strengthening its value message through initiatives such as Deal Bar and Toy Tower, which feature seasonal, gifting and toy products at price points below $10. Both concepts performed better than initially expected during the quarter.
The 6% comparable sales increase in proprietary brands underscores the growing role of Kohl’s exclusive labels within its value strategy. As the company expands inventory support, marketing efforts and in-store visibility for these brands, private labels are becoming an increasingly important part of delivering affordable products and reinforcing KSS’ value proposition across its merchandise assortment.
WMT and TGT Also Lean on Value and Exclusive AssortmentsWalmart Inc. (WMT - Free Report) is also using value and private brands to support customer engagement. In first-quarter fiscal 2027, the company reported 4.1% comparable sales growth in Walmart U.S., backed by a 3% increase in transactions. In general merchandise, WMT’s private-brand sales rose double digits, while private-brand mix expanded 175 basis points. Walmart also had about 7,200 rollbacks across its assortment, reinforcing its value message.
Target Corporation (TGT - Free Report) is taking a similar value-led approach through affordable, trend-right assortments. In first-quarter 2026, TGT posted 5.6% comparable sales growth, driven partly by a 4.4% increase in comparable traffic. The company cited strength in toys, where new offerings priced at $20 or less helped deliver double-digit comparable growth. For Target, value-focused assortments remain key to driving guest engagement.
KSS Stock Price Performance, Valuation & EstimatesShares of Kohl’s have surged 94.1% over the past year compared with the industry’s growth of 73.6%.
KSS Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, KSS trades at a forward price-to-earnings ratio of 13.7, lower than the industry’s average of 14.41.
KSS’ Valuation Compared to Industry
Image Source: Zacks Investment Research
Elliott Rodgers will assume the role on Sept. 9, taking on responsibility for Kohl's enterprise operations including its stores, global supply chain and distribution centers, procurement and loss prevention, the retailer said.
MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--Kohl's (NYSE: KSS) today announced that Elliott Rodgers has been named Kohl's Chief Operating Officer, reporting to CEO Michael J. Bender. In this role, Rodgers, who brings more than 20 years of strong cross-functional leadership experience, will be responsible for Kohl's enterprise operations, including its nearly 1,200 stores, Global Supply Chain and Distribution Centers, Procurement, and Loss Prevention. He will assume the role on September 9, 2026.
"We are thrilled to welcome Elliott to our senior leadership team as we continue our transformational efforts to drive the business forward," said Bender. "With more than 20 years of leadership experience in retail and large-scale operational roles, he has helped brands navigate through change, embrace innovation, and drive results through operational execution. Importantly, as he fills the role which oversees the largest portion of our associate population, Elliott thrives at bringing people together to create an inspiring work environment and a winning-team mindset. I'm excited for Elliot to take on this important role during a time of exciting change and opportunity."
"I'm honored to join Kohl's and be a part of the company's strategic path forward," said Rodgers. "I'm energized by Kohl's commitment to serving its customers now and for years to come, and I look forward to contributing to the work the teams already have underway – creating a compelling customer experience and paving a path for the future."
Rodgers has more than 20 years of leadership experience across supply chain, technology, strategy, finance, and HR disciplines at retail, technology, and financial service companies. Most recently, Rodgers was Chief Operations Officer at Foot Locker, Inc., where he led technology, supply chain, procurement, customer care, operations strategy, and enterprise transformation. Before that, he was Chief People Officer at project44. From 2013 - 2021, Rodgers held progressive leadership roles at Ulta Beauty, including Chief Supply Chain Officer and Chief Information Officer. Earlier in his career, Rodgers spent six years at Target in distribution and omnichannel operations and three years as a Vice President at Citigroup.
Rodgers was a Captain in the U.S. Army, holds a Bachelor of Science from the United States Military Academy at West Point, and an MBA from Harvard Business School.
About Kohl’s
Kohl’s (NYSE: KSS) is a leading omnichannel retailer built on a foundation that combines great brands, incredible value and convenience for our customers. Kohl’s is uniquely positioned to deliver against its long-term strategy and its purpose to take care of families’ realest moments. Kohl's serves millions of families in its more than 1,100 stores in 49 states, online at Kohls.com, and through the Kohl's App. With a large national footprint, Kohl’s is committed to making a positive impact in the communities it serves. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com.
Kohl's Corporation (NYSE:KSS) reported first quarter 2026 results that showed a smaller-than-expected loss and better-than-anticipated revenue and sales trends, sending its shares up about 17% on Thursday.
For the quarter ended May 2, 2026, Kohl’s posted a diluted loss of $0.13 per share, beating Wall Street expectations for a loss of $0.21 per share.
Revenue totaled $3 billion, slightly ahead of estimates of $2.99 billion.
Net sales declined 1.7% year-over-year, while comparable sales fell 1.1%, a smaller drop than the 1.7% decline analysts had forecast.
Kohl’s CEO Michael Bender said the company’s “key initiatives continue to drive progressive improvements to the business,” highlighting the retailer’s “best comparable sales performance in over four years.”
He also pointed to disciplined cost management, lower inventories, and an improved balance sheet.
“We remain committed to delivering more value and a better experience to our customers,” Bender said.
Kohl’s reiterated its full-year fiscal 2026 guidance. The company continues to expect net and comparable sales to range from a 2% decline to flat, with adjusted operating margin projected between 2.8% and 3.4%.
Adjusted diluted earnings per share are expected in the range of $1 to $1.60, while capital expenditures are forecast between $350 million and $400 million.
The company also declared a quarterly cash dividend of $0.125 per share, payable June 24, 2026, to shareholders of record as of June 10, 2026.
Kohl's (KSS - Free Report) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to a loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +27.78%. A quarter ago, it was expected that this department store operator would post earnings of $0.85 per share when it actually produced earnings of $1.07, delivering a surprise of +25.88%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Kohl's, which belongs to the Zacks Retail - Regional Department Stores industry, posted revenues of $3.17 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.18%. This compares to year-ago revenues of $3.23 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Kohl's shares have lost about 36.7% since the beginning of the year versus the S&P 500's gain of 9.9%.
What's Next for Kohl's?While Kohl's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Kohl's was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.51 on $3.49 billion in revenues for the coming quarter and $1.31 on $15.37 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Regional Department Stores is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Macy's (M - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.
This department store operator is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -87.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Macy's' revenues are expected to be $4.62 billion, up 0.5% from the year-ago quarter.
Kohl's (KSS - Free Report) reported $3.17 billion in revenue for the quarter ended April 2026, representing a year-over-year decline of 2%. EPS of -$0.13 for the same period compares to -$0.13 a year ago.
The reported revenue represents a surprise of +0.18% over the Zacks Consensus Estimate of $3.16 billion. With the consensus EPS estimate being -$0.18, the EPS surprise was +27.78%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Kohl's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Number of stores - Total: 1,151 compared to the 1,153 average estimate based on three analysts.Comparable store sales - YoY change: -1.1% versus -1.9% estimated by three analysts on average.Revenue- Net sales: $3 billion compared to the $2.99 billion average estimate based on three analysts. The reported number represents a change of -1.7% year over year.Revenue- Other revenue: $169 million versus the three-analyst average estimate of $171.32 million. The reported number represents a year-over-year change of -8.2%.View all Key Company Metrics for Kohl's here>>>
Shares of Kohl's have returned -7.5% over the past month versus the Zacks S&P 500 composite's +5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Kohl's is upgraded to a "Buy," with compelling value after recent declines and macro pressures fully priced in. Q1 results exceeded expectations: EPS loss of $0.13 beat by $0.09, proprietary brands grew 6%, and gross margins held steady at 39.9%. KSS maintains guidance for flat to -2% sales and $1.00-$1.60 EPS, with free cash flow projected at $350–$410 million for deleveraging.
Kohl's Corporation (NYSE:KSS) reported first quarter 2026 results that showed a smaller-than-expected loss and better-than-anticipated revenue and sales trends, sending its shares up about 17% on Thursday.
For the quarter ended May 2, 2026, Kohl’s posted a diluted loss of $0.13 per share, beating Wall Street expectations for a loss of $0.21 per share.
Revenue totaled $3 billion, slightly ahead of estimates of $2.99 billion.
Net sales declined 1.7% year-over-year, while comparable sales fell 1.1%, a smaller drop than the 1.7% decline analysts had forecast.
Kohl’s CEO Michael Bender said the company’s “key initiatives continue to drive progressive improvements to the business,” highlighting the retailer’s “best comparable sales performance in over four years.”
He also pointed to disciplined cost management, lower inventories, and an improved balance sheet.
“We remain committed to delivering more value and a better experience to our customers,” Bender said.
Kohl’s reiterated its full-year fiscal 2026 guidance. The company continues to expect net and comparable sales to range from a 2% decline to flat, with adjusted operating margin projected between 2.8% and 3.4%.
Adjusted diluted earnings per share are expected in the range of $1 to $1.60, while capital expenditures are forecast between $350 million and $400 million.
The company also declared a quarterly cash dividend of $0.125 per share, payable June 24, 2026, to shareholders of record as of June 10, 2026.
Dillard’s Posted a Huge Earnings Beat—So Why Did the Rally Fade?Kohl's NYSE: KSS reported what executives described as its strongest quarterly comparable sales performance in more than four years, as the retailer cited gains in proprietary brands, improved inventory management and stabilization among its Kohl's Card customers.
On the company's first-quarter fiscal 2026 earnings call, Chief Executive Officer Michael Bender said comparable sales declined 1.1% from a year earlier, while net sales fell 1.7%. Bender said the quarter showed "progressive improvements" in the business and reflected Kohl's efforts to reset its foundation after several quarters of weaker trends.
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Kohl’s Stock Rebound Faces a Showdown With Short Sellers"We are pleased with our start to 2026," Bender said, adding that the company continues to manage expenses, inventory and its balance sheet tightly. He said the results gave management "increased confidence" in its ability to execute against key initiatives, though he cautioned that the company remains realistic about the work ahead.
Proprietary Brands and Kohl's Card Customers Show Improvement A central focus of the call was Kohl's proprietary brand portfolio, which Bender said rose 6% on a comparable sales basis in the quarter. He said the brands are resonating with customers because they offer quality products at affordable opening price points.
What's Behind Opendoor Technologies' Rally? Is Meme Mania Back?Bender highlighted strength in women's and juniors apparel, particularly the SO brand, which helped drive a 10% increase in the juniors business. He said Kohl's plans to expand SO into dress and casual categories through its Office Edit collection. Women's sportswear also performed well, supported by brands including LC Lauren Conrad and Sonoma.
Kohl's Card customers also stabilized, delivering a flat comparable sales performance after declining in the mid-single-digit range in the fourth quarter. Chief Financial Officer Jill Timm said that represented a 600-basis-point improvement from the prior quarter and was an important sign for one of the company's most productive customer groups.
"A lot of the efforts that we've been talking to you guys about for a year was really geared at getting back that customer," Timm said during the question-and-answer session. She said Kohl's had not lost the customer, but needed to encourage more frequent visits.
Category Performance Was Mixed Bender said four lines of business delivered flat to slightly positive comparable sales in the first quarter: women's, kids, accessories and home. Seasonal spring merchandise was up in the mid-teens versus the prior year after Kohl's adjusted buying and supply chain processes following issues with fall seasonal inventory planning and allocation.
The kids business benefited from efforts to expand proprietary brands, including the rollout of FLX to kids in all stores by June, the introduction of the tween brand Sea + Skye and an expansion of Jumping Beans into baby and infant categories. Kohl's also plans to add 56 Babies R Us shop-in-shops this fall and expand baby gear gifting zones.
Accessories posted a flat comp, with impulse queuing lines up more than 50% in the quarter. The company said it is expanding fine jewelry to an additional 350 stores after a 200-store test and adding SO-branded fashion and hair accessories in the juniors department.
Home improved more than 400 basis points from the fourth quarter, helped by brands such as Shark and Ninja, as well as proprietary brands including Miryana and Mingle & Co. Home decor improved to a low-single-digit gain after Kohl's adjusted its seasonal decor strategy.
Men's and footwear underperformed the company average. Bender said men's should begin improving in the second quarter as assortment edits take hold, while footwear is expected to improve with newness and greater depth for back-to-school, including offerings from Nike and Adidas.
Digital Sales Rise, Stores Remain Under Pressure Timm said digital sales grew 4% in the quarter, supported by increased traffic and investments to modernize the online shopping experience. Including marketplace gross merchandise value, comparable sales would have improved by about 50 basis points and declined 0.6%, she said.
By contrast, stores were down in the low single digits, primarily due to fewer transactions. Timm said Kohl's is addressing the weakness by investing in store inventory to improve in-stock levels and "trip assurance," while also elevating the in-store environment.
Bender said improving trip assurance is a key part of the company's omnichannel strategy. He said Kohl's is planning apparel depth up in the high single digits while reducing choice counts by a similar amount, with the goal of helping customers find the right size and color at an affordable price.
The company is also investing in digital tools. Bender said Kohl's recently launched an AI-powered gift finder on its website using Google Gemini and is working on more curated digital experiences, better product storytelling, clearer delivery information and easier returns. Kohl's also plans to more than double its marketplace item count this year.
Sephora at Kohl's Underperforms Sephora at Kohl's was one area of softness, with the business down in the low single digits. Bender said fragrance and haircare remained the strongest categories, helped by brands such as KAYALI and Kérastase, while makeup and skincare underperformed.
Management said Kohl's plans to drive improvement through holiday gifting moments, new brands and social media campaigns. The company launched M·A·C in March, and Bender said it is scheduled for a full-store rollout later this year. Kohl's is also adding Korean skincare brands including Beauty of Joseon, Aestura and Biodance.
Guidance Reaffirmed as Balance Sheet Improves Timm said gross margin improved four basis points from last year, helped by higher proprietary brand penetration and mostly offset by higher shipping costs tied to digital sales growth. Selling, general and administrative expenses declined $20 million, or 1.6%, due mainly to savings in credit and corporate expenses.
The company reported a net loss of $14 million, or $0.13 per diluted share. Interest expense declined $13 million, largely due to open market debt repurchases at a discount.
Cash and cash equivalents totaled $429 million at quarter-end, with no borrowings on the asset-based lending facility. Inventory declined about 8% from a year earlier, while receipts were up 1%. Kohl's repurchased $50 million of debt at a $9 million discount during the quarter. The company returned $14 million to shareholders through its quarterly dividend. Kohl's reaffirmed its fiscal 2026 outlook, calling for comparable sales to range from down 2% to flat versus 2025, operating margin of 2.8% to 3.4% and diluted earnings per share of $1.00 to $1.60. Timm said the guidance does not include any potential impact from tariff refunds. She said Kohl's submitted $140 million of claims in the first quarter related to tariffs paid as importer of record and is eligible for $190 million in total tariff refunds, though none were received during the quarter.
Management said the company remains cautious because its core low- to middle-income customer continues to face financial pressure and is selective with discretionary spending. Bender said Kohl's will continue to focus on value, proprietary brands and improving the shopping experience as it works through the rest of 2026.
About Kohl's NYSE: KSSKohl's Corporation, founded in 1962 by Maxwell Kohl and headquartered in Menomonee Falls, Wisconsin, is a leading American department store retailer. The company operates approximately 1,100 stores across 49 states, offering a combination of value-oriented pricing, private-label brands and national labels. Since its initial public offering in 1992, Kohl's has focused on broadening its product assortment and enhancing the in-store and online shopping experience.
The retailer's merchandise portfolio spans apparel, footwear, accessories, and beauty products for women, men and children, as well as home goods, kitchenware and seasonal décor.
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