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 for the quarter, beating analysts’ consensus estimates of $0.58 by $0.70, FiscalAI reports. Kohl’s had a net margin of 1.75% and a return on equity of 6.75%. The company had revenue of $3.52 billion during the quarter, compared to the consensus estimate of $3.32 billion. During the same period in the prior year, the company earned $0.56 EPS. Kohl’s’s revenue was down .9% on a year-over-year basis. 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 Price Performance

Shares of NYSE:KSS opened at $18.24 on Friday. The company’s fifty day moving average is $18.24 and its two-hundred day moving average is $16.02. The company has a market cap of $2.07 billion, a P/E ratio of 7.96 and a beta of 1.40. Kohl’s has a 12-month low of $11.38 and a 12-month high of $25.22. The company has a quick ratio of 0.31, a current ratio of 1.49 and a debt-to-equity ratio of 0.87.

Kohl’s Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 23rd. Shareholders of record on Wednesday, September 9th will be paid a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Wednesday, September 9th. Kohl’s’s payout ratio is 21.83%.

Key Stories Impacting Kohl’s

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

• Positive Sentiment: Q2 earnings and guidance beat expectations: Kohl’s reported adjusted EPS of $1.28, well above estimates near $0.55–$0.58, while revenue of approximately $3.52 billion also exceeded forecasts. The company raised fiscal 2026 EPS guidance to $1.80–$2.40, versus consensus near $1.48, and provided revenue guidance above analysts’ expectations. KSS Q2 Earnings Beat Estimates on Margin Gains, Outlook Raised
• Positive Sentiment: Margins and liquidity improved: Gross-margin expansion, cost controls, inventory discipline and stronger liquidity supported profitability. Kohl’s also continues emphasizing proprietary brands and expense management, reinforcing the value case after the stock’s recent rebound. Kohl’s Q2 Earnings Beat Shifts Focus to Holiday Execution and Margins
• Neutral Sentiment: Valuation offers support, but expectations are rising: Kohl’s trades at a relatively low earnings multiple, and analysts see potential if sales stabilize. However, the 15.6% three-month rally increases the need for convincing holiday-season execution. Telsey Advisory Group raised its price target to $18 but retained a “market perform” rating. Kohl’s Stock Is Up 15.6% in 3 Months: Is the Rebound Sustainable?
• Negative Sentiment: Sales remain the key concern: Net and comparable sales declined 0.9%, extending Kohl’s revenue-reduction streak as budget-conscious consumers prioritize essentials over discretionary merchandise. Investors also questioned whether the earnings beat reflected the underlying business or temporary benefits. Kohl’s Sales Dip As Consumers Prioritize Essentials
• Negative Sentiment: Tariff refunds may overstate the improvement: Approximately $150 million of tariff refunds materially boosted the quarter and outlook. Analysts warn that, excluding this benefit, earnings and gross-margin progress was more limited, while heavier fall promotions could pressure margins. Elevated leverage and Kohl’s large store base remain additional risks.

Wall Street Analyst Weigh In

KSS has been the topic of several recent research reports. Zacks Research raised shares of Kohl’s from a “hold” rating to a “strong-buy” rating in a research note on Wednesday. JPMorgan Chase & Co. increased their target price on shares of Kohl’s from $15.00 to $17.00 and gave the company an “underweight” rating in a research note on Tuesday, August 18th. Bank of America reduced their target price on shares of Kohl’s from $15.00 to $14.00 and set an “underperform” rating for the company in a report on Friday, May 29th. Gordon Haskett lowered shares of Kohl’s from a “buy” rating to a “hold” rating and set a $14.00 price target on the stock. in a research report on Friday, May 15th. Finally, TD Cowen upped their price target on Kohl’s from $13.50 to $16.00 and gave the company a “hold” rating in a report on Monday, June 8th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, eight have assigned a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $16.17.

Insider Activity at Kohl’s

In other news, EVP Jennifer J. Kent sold 22,942 shares of Kohl’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $20.00, for a total transaction of $458,840.00. Following the transaction, the executive vice president owned 234,452 shares in the company, valued at approximately $4,689,040. The trade was a 8.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.55% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Kohl’s

Hedge funds have recently bought and sold shares of the business. IFP Advisors Inc boosted its position in Kohl’s by 3,777.6% during the 3rd quarter. IFP Advisors Inc now owns 1,900 shares of the company’s stock worth $31,000 after acquiring an additional 1,851 shares during the period. iSAM Funds UK Ltd acquired a new position in shares of Kohl’s in the 3rd quarter valued at about $39,000. Los Angeles Capital Management LLC acquired a new position in shares of Kohl’s in the 4th quarter valued at about $45,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Kohl’s in the fourth quarter worth approximately $46,000. Finally, Larson Financial Group LLC lifted its position in shares of Kohl’s by 2,529.7% in the third quarter. Larson Financial Group LLC now owns 3,103 shares of the company’s stock worth $48,000 after purchasing an additional 2,985 shares in the last quarter. 98.04% of the stock is owned by hedge funds and other institutional investors.

Kohl’s Company Profile

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.