Key Takeaways
- Fourth-quarter revenue declined 3.9% year-over-year to $4.97 billion, below the $5.02–$5.03 billion Wall Street projection
- Comparable store sales decreased 2.8%, significantly worse than the anticipated 1.5% drop
- Adjusted earnings per share reached $1.07, exceeding the 86-cent forecast, though this failed to offset revenue concerns
- Fiscal year guidance projects comparable sales between down 2% and flat, trailing analyst projections
- Store visits declined 5% during Q4, contrasting sharply with Ross Stores’ 11.9% traffic increase
Shares of Kohl’s tumbled by as much as 9% during premarket hours Tuesday following the department store chain’s announcement of disappointing fourth-quarter results and a conservative forecast for fiscal 2026. Year-to-date, the stock has declined approximately 28%.
$KSS Q4’25 EARNINGS HIGHLIGHTS
🔹 Revenue: $5.0B (Est. $5.02B) 🟡; DOWN 3.9% Y/Y
🔹 EPS: $1.07 (Est. $0.86) 🟢
🔹 Comp sales: -2.8%
🔹 Gross margin: 33.1% (+25 bps Y/Y)
🔹 Operating cash flow: $750MFY’26 Guide:
🔹 Adj. EPS: $1.00-$1.60 (Est. $1.38B) 🟡
🔹 Adj. operating… pic.twitter.com/SeYtr9HTGV— Wall St Engine (@wallstengine) March 10, 2026
Fourth-quarter revenue totaled $4.97 billion, representing a 3.9% year-over-year decrease and falling below analyst projections of $5.02–$5.03 billion. Comparable sales contracted 2.8% — substantially worse than the 1.5% decline Wall Street had anticipated.
The sole positive in the report came from profitability metrics. Adjusted earnings per share reached $1.07, surpassing the consensus estimate of 86 cents. However, investors remained focused on the top-line weakness.
CEO Michael Bender, who assumed the permanent leadership position in November, conceded that quarterly performance fell short of internal expectations. “We are ending 2025 in a stronger position than we started, with important work still ahead of us,” he stated in the company’s release.
Bender characterized the organization as undergoing a “foundation reset,” language suggesting the transformation journey will be prolonged rather than immediate.
Fifth Consecutive Year of Comparable Sales Pressure
The annual forecast offered little encouragement to shareholders. Kohl’s projected comparable net sales ranging from flat to down 2% for the current fiscal year. Wall Street had been modeling just a 0.7% contraction.
The company’s adjusted EPS forecast of $1.00 to $1.60 places the midpoint at $1.30 — beneath the $1.39 analyst consensus. The wide guidance band suggests management uncertainty about the trajectory ahead.
Should comparable sales decline materialize, it would represent the fifth consecutive annual period of same-store sales deterioration for the retailer.
Traffic analysis from Placer.ai highlights the retailer’s struggles. Throughout the October-December quarter, store visits to Kohl’s locations fell 5%. Meanwhile, Ross Stores experienced an 11.9% surge in foot traffic during the identical timeframe.
Competitive Pressures Mounting
The department store has steadily ceded market share to Amazon and discount-focused competitors over recent quarters. Weak consumer discretionary spending has compounded these challenges, while merchandising missteps have further dampened customer demand.
Leadership instability has plagued the organization in recent years. Bender’s November appointment was designed to provide consistency and strategic clarity to the ongoing transformation initiatives.
Despite 2026’s struggles, KSS delivered impressive performance over the trailing twelve months — climbing approximately 62% following a brief stint as a meme stock phenomenon last summer and delivering better-than-expected November earnings.
The shares have fallen 27–28% in 2026 to date.
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