Kohl’s Guides Fiscal 2026 EPS Below Consensus, Sales Seen Falling Up to 2%
Kohl’s had Q4 adjusted EPS of $1.07, beating forecasts by $0.22, while revenue decreased 3.9% to $5.0 billion, missing estimates. The company guided fiscal 2026 adjusted EPS of $1.00–1.60 (midpoint $1.30) below consensus and forecast sales down up to 2%, driving a near 10% share drop.
1. Fourth-Quarter Performance
Kohl’s reported Q4 adjusted EPS of $1.07, beating estimates by $0.22, but revenue fell 3.9% year-over-year to $5.0 billion, missing forecasts. Comparable sales declined 2.8%, while gross margin improved 25 basis points to 33.1% and SG&A expenses decreased 4.9% to $1.5 billion.
2. Fiscal 2026 Guidance
For fiscal 2026, Kohl’s expects adjusted EPS of $1.00–1.60 (midpoint $1.30), below analyst consensus of $1.38, and projects net and comparable sales down up to 2%. Management forecasts an adjusted operating margin of 2.8%–3.4%, a outlook that prompted shares to drop nearly 10%.
3. Full-Year 2025 Metrics
In full-year 2025, net sales declined 4.0% to $14.8 billion and comparable sales fell 3.1%. Adjusted diluted EPS rose to $1.62 from $1.50, operating cash flow increased to $1.4 billion from $648 million, inventory was down 7% to $2.7 billion, and a $0.125 quarterly dividend was declared.