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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Net Sales | Miss | $4.97 bln | $5.03 bln (7 Analysts) |
Q4 Adjusted EPS | Beat | $0.95 | $0.85 (12 Analysts) |
Q4 EPS | $1.07 | ||
Q4 Net Income | $125 mln | ||
Q4 Gross Margin | 33.10% | ||
Q4 Comparable Sales Growth | -2.80% | ||
Q4 EBIT | $212 mln | ||
Q4 Pretax Profit | $153 mln |
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.)