Kohl’s (NYSE:KSS) Announces Quarterly Earnings Results

Kohl’s (NYSE:KSS) issued its quarterly earnings results on Wednesday. The company reported $1.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.58 by $0.70, FiscalAI reports. The business had revenue of $3.52 billion for the quarter, compared to analyst estimates of $3.32 billion. Kohl’s had a return on equity of 4.67% and a net margin of 1.76%.The firm’s revenue for the quarter was down .9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.56 earnings per share. Kohl’s updated its FY 2026 guidance to 1.800-2.400 EPS.

Here are the key takeaways from Kohl’s’ conference call:

• Kohl’s raised its fiscal 2026 outlook, now expecting comparable sales between a 1.5% decline and flat, adjusted operating margin of 3.5%–4%, and adjusted EPS of $1.80–$2.40, including approximately $0.65 from tariff refunds.
• Balance-sheet and cash-flow performance strengthened materially: cash rose to $821 million, inventory declined 3%, and operating cash flow is expected to reach approximately $950 million–$1 billion. Kohl’s also plans to resume share repurchases with about $100 million of buybacks in 2026 while continuing opportunistic debt repurchases.
• Second-quarter comparable sales declined 0.9%, although digital sales increased 2.8% and Kohl’s Card sales rose 1%. Proprietary brands grew 3%, Marketplace GMV surged 88%, and Home, Kids, and Juniors were leading areas of improvement.
• The company continues to face a pressured lower- to middle-income consumer, with discretionary spending remaining choiceful and average transaction value declining slightly as shoppers shift toward opening-price-point products. Management expects a challenging macroeconomic backdrop and plans additional investments in pricing, media, inventory, and store staffing.
• Sephora sales fell 4% in the quarter as expanded distribution of major brands weighed on results, while newer brands have not yet scaled enough to offset the declines. Management expects Sephora’s softer performance to persist through the remainder of the year.

Kohl’s Stock Up 1.1%

NYSE:KSS opened at $17.88 on Thursday. Kohl’s has a 1 year low of $11.38 and a 1 year 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 cap of $2.03 billion, a price-to-earnings ratio of 7.58 and a beta of 1.40. The stock has a 50-day moving average price of $18.22 and a two-hundred day moving average price of $16.02.

Kohl’s Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 23rd. Shareholders of record on Wednesday, September 9th will be issued a dividend of $0.125 per share. The ex-dividend date is Wednesday, September 9th. This represents a $0.50 annualized dividend and a yield of 2.8%. Kohl’s’s payout ratio is currently 21.19%.

Insider Transactions at Kohl’s

In other Kohl’s news, EVP Jennifer J. Kent sold 22,942 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $20.00, for a total transaction of $458,840.00. Following the sale, the executive vice president directly owned 234,452 shares in the company, valued at approximately $4,689,040. This trade represents a 8.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.55% of the company’s stock.

Institutional Investors Weigh In On Kohl’s

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. IFP Advisors Inc boosted its position in Kohl’s by 3,777.6% during 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 during the last quarter. iSAM Funds UK Ltd acquired a new stake in shares of Kohl’s in the 3rd quarter valued at approximately $39,000. Los Angeles Capital Management LLC bought a new position in shares of Kohl’s in the fourth quarter valued at $45,000. Kemnay Advisory Services Inc. bought a new position in shares of Kohl’s in the fourth quarter valued at $46,000. Finally, Larson Financial Group LLC increased its holdings in Kohl’s by 2,529.7% during the third quarter. Larson Financial Group LLC now owns 3,103 shares of the company’s stock worth $48,000 after buying an additional 2,985 shares during the last quarter. 98.04% of the stock is owned by institutional investors.

Key Stories Impacting Kohl’s

Here are the key news stories impacting Kohl’s this week:

• Positive Sentiment: Second-quarter adjusted EPS was $1.28, well above analyst estimates of roughly $0.55-$0.58 and up from $0.56 a year earlier. Revenue of approximately $3.52 billion also exceeded consensus expectations. Gross-margin expansion, expense controls and tightly managed inventory supported the quarter. Kohl’s Q2 Earnings Beat Estimates
• Positive Sentiment: Kohl’s raised fiscal 2026 guidance to $1.80-$2.40 in EPS and $15.3-$15.5 billion in revenue, above prior Wall Street expectations. The company cited about $150 million in tariff refunds, cost reductions and margin gains as key drivers. Kohl’s raises profit forecast after tariff refunds
• Positive Sentiment: Management said sales trends improved during the quarter and continues emphasizing proprietary brands, operational efficiency and its turnaround initiatives. Some investors view the low valuation—approximately 7.6 times earnings—as providing potential upside if sales stabilize. Kohl’s: The Best Deal In The Retail Sector
• Neutral Sentiment: Kohl’s appointed Arianne Parisi as chief customer officer, a move intended to strengthen customer engagement and merchandising execution. Kohl’s Names Arianne Parisi Chief Customer Officer
• Negative Sentiment: Net and comparable sales declined 0.9%, extending Kohl’s revenue declines to an 18th consecutive quarter. Cautious consumers are prioritizing essentials over discretionary department-store purchases, raising doubts about the pace of the turnaround. Kohl’s Sales Dip As Consumers Prioritize Essentials
• Negative Sentiment: Investors viewed the earnings beat as less durable because tariff refunds contributed materially to profit; excluding that benefit, EPS and gross margins were reportedly roughly flat. Management also warned that heavier fall promotions could pressure margins, while leverage and a large store footprint remain concerns. Kohl’s Q2 Review: Tariff Refunds Fuel Buybacks

Wall Street Analyst Weigh In

A number of brokerages have issued reports on KSS. Zacks Research cut shares of Kohl’s from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 15th. UBS Group raised their price target on Kohl’s from $8.00 to $9.00 and gave the stock a “sell” rating in a research report on Friday, May 29th. Bank of America decreased their price objective on Kohl’s from $15.00 to $14.00 and set an “underperform” rating for the company in a research note on Friday, May 29th. JPMorgan Chase & Co. upped their price objective on Kohl’s from $15.00 to $17.00 and gave the company an “underweight” rating in a report on Tuesday, August 18th. Finally, Morgan Stanley reissued an “underweight” rating and issued a $15.00 target price on shares of Kohl’s in a research note on Monday, July 6th. One investment analyst has rated the stock with a Buy rating, nine have given a Hold rating and six have given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average price target of $15.46.

About Kohl’s

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.