Kohl's Q4 adjusted EPS for beat expectations on lower SG&A expenses

Kohls

10/03/2026 11:08

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.)