Kohl’s posted fourth quarter (Q4) net income of $125m, compared to net income of $48m and adjusted net income of $106 million, or $0.95 per adjusted diluted share, in the prior year.
Net sales at the New York-listed department store chain during the quarter fell 3.9%, to $5bn, or by 2.8% on a comparable basis.
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Operating income was $212m in Q4 compared to $126m in the prior year while Gross margin as a percentage of net sales was 33.1%, an increase of 25 basis points.
Over the year to 31 January 2026, net sales fell 4% to $14.8bn, or by 3.1% on a like-for-like basis, while net income more than doubled to $272m from $109m.
Operating income was $624m compared to $433m in the prior year. As a percentage of total revenue, operating income was 4.0%, an increase of 135 basis points year-over-year.
Michael J. Bender, Kohl’s chief executive officer, said, “We are ending 2025 in a stronger position than we started, with important work still ahead of us. Over the past year, our efforts have been focused on resetting our foundation. This focus is intended to stabilize the business and strengthen our operational ability to build for a stronger future.
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By GlobalData“In 2025, we made meaningful progress, despite our Q4 topline coming in softer than our expectations. We were able to manage the business with discipline, deliver improved earnings, and generate meaningful cash flow, all of which helped us strengthen our balance sheet.”
For the full year 2026 Kohl’s expects net sales and comparable sales to come in between 2% lower and flat with adjusted diluted earnings per share in the range of $1.00 and $1.60.
Adjusted operating margin is expected to fall in the range of 2.8%-3.4% and capital expenditure to be approximately between $350m to $400m.
Bender continued: “In 2026, we are committed to further strengthening our foundation by addressing operational opportunities, building on our strengths, and modernizing our processes. We are confident that the work we are investing in now is essential for Kohl’s long-term benefit.”
Last year, Kohl’s said it planned to accelerate its focus on reducing its debt and strengthening the company financially, weeks after it announced a leadership shakeup.
