Kohl's Reports Q4 Sales Miss, Issues Weak 2026 Guidance
Summary
Kohl's reported a decline in Q4 sales and provided a cautious outlook for fiscal year 2026, projecting flat to negative sales growth and potentially lower earnings per share.
Key Events
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Q4 2025 Sales Decline
Net sales for the fourth quarter decreased 3.9% year-over-year to $4.972 billion, with comparable sales down 2.8%, falling slightly below analyst forecasts.
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Full Year 2025 Performance
For the full fiscal year 2025, net sales decreased 4.0% to $14.775 billion, and comparable sales were down 3.1%. Diluted EPS was $2.38, with adjusted diluted EPS at $1.62.
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Weak Fiscal Year 2026 Guidance
The company projects fiscal year 2026 net sales and comparable sales to decrease by 2% to flat. Adjusted diluted EPS is guided to be in the range of $1.00 to $1.60, which is below the prior year's adjusted EPS of $1.62.
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Capital Allocation Plans
Kohl's plans capital expenditures of approximately $350 million to $400 million for 2026 and reaffirmed its quarterly cash dividend of $0.125 per share.
Analysis
The 8-K details Kohl's fourth-quarter and full-year 2025 financial performance, which included a sales decline that fell short of analyst expectations. More critically, the company's fiscal year 2026 guidance anticipates continued challenges, with net sales and comparable sales expected to be flat to down 2%, and adjusted diluted EPS potentially lower than the prior year. This outlook reflects ongoing competitive pressures and a difficult retail environment, likely impacting investor confidence in the company's near-term growth prospects.
At the time of this filing, KSS was trading at $14.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $6.04 to $25.22. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.