Overview

• U.S. retailer's Q4 net sales fell 3.9%, missing analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company's Q4 operating income rose to $212 mln from $126 mln year-over-year

Outlook

• Kohl's expects 2026 net sales and comparable sales to decrease by 2% or remain flat

• Company projects 2026 adjusted operating margin between 2.8% and 3.4%

• Kohl's forecasts 2026 adjusted diluted EPS between $1.00 and $1.60

Result Drivers

• COST MANAGEMENT - SG&A expenses decreased 4.9% year-over-year, contributing to improved operating income

• GROSS MARGIN IMPROVEMENT - Gross margin increased by 25 basis points, despite a decline in net sales

• INVENTORY REDUCTION - Inventory decreased by 7% year-over-year, aiding cash flow improvements

Company press release: ID:nBw3GHC88a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy."

• Wall Street's median 12-month price target for Kohls Corp is $22.00, about 48.6% above its March 9 closing price of $14.80

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)