Quick Summary
- Q4 revenue declined 3.9% year-over-year to $4.97 billion, falling short of Wall Street’s $5.02–$5.03 billion target
- Comparable store sales decreased 2.8%, significantly worse than the anticipated 1.5% drop
- Earnings per share of $1.07 on an adjusted basis exceeded the 86-cent forecast, though revenue weakness dominated investor sentiment
- Fiscal year outlook projects comparable sales between down 2% and flat, disappointing analyst expectations
- Store visits declined 5% during Q4, contrasting sharply with Ross Stores’ 11.9% traffic increase
Shares of Kohl’s experienced a sharp decline of up to 9% during premarket hours Tuesday following the department store chain’s disappointing fourth-quarter performance and conservative fiscal year projections. Year-to-date in 2026, the stock has lost approximately 28% of its value.
$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 year-over-year decrease of 3.9% and missing analyst projections of $5.02 to $5.03 billion. The retailer’s comparable sales metric fell 2.8%, substantially exceeding the 1.5% decline Wall Street had anticipated.
Profitability provided the quarter’s sole positive development. The company posted adjusted earnings per share of $1.07, surpassing analyst expectations of 86 cents. However, investors remained focused on the top-line shortfall.
Chief Executive Officer Michael Bender, who assumed the permanent position in November, conceded that quarterly performance fell below internal projections. “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 an extended transformation process rather than imminent recovery.
Fifth Consecutive Year of Comparable Sales Pressure
The company’s forward guidance offered limited optimism for investors. Kohl’s projected comparable net sales ranging from flat to down 2% for the current fiscal year. The Street had been modeling a more modest 0.7% contraction.
Management’s adjusted earnings per share forecast of $1.00 to $1.60 establishes a midpoint of $1.30—trailing the consensus estimate of $1.39. The wide guidance band suggests considerable uncertainty in leadership’s visibility.
Should comparable sales contract as projected, this would represent the retailer’s fifth consecutive year of same-store sales deterioration.
Store traffic metrics from Placer.ai highlight the company’s struggle to attract shoppers. Throughout the October-December quarter, Kohl’s locations experienced a 5% decrease in visitor traffic. During the identical period, Ross Stores posted an 11.9% increase in foot traffic.
The Competitive Landscape Shift
Amazon and off-price competitors have steadily captured market share from Kohl’s over recent quarters. Weakening discretionary consumer spending has compounded the retailer’s challenges, alongside persistent merchandising missteps that have dampened customer demand.
The company has experienced considerable executive turnover in recent years. Bender’s November appointment as permanent CEO was designed to provide operational continuity and strategic focus for the ongoing transformation initiative.
Despite the current year’s weakness, KSS shares delivered impressive returns over the trailing 12 months—appreciating roughly 62% following a brief period as a trending meme stock last summer and a November earnings surprise.
The stock has declined 27–28% thus far in 2026.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
