Kohl's Q1 Loss of $14M with Best Four-Year Comps and Zero Debt
KSS•Kohl's reported a Q1 net loss of $14M (13c per share) on $3.0B revenue, a 1.7% decline, while recording its smallest comparable sales drop in over four years at 1.1%. Inventory fell 8% to $2.9B and revolving credit borrowings were eliminated, down $545M, as Kohl's maintained flat-to-2% sales guidance and $1.00-1.60 adjusted EPS.
1. Q1 Financial Results
Kohl's posted a Q1 net loss of $14 million, or $0.13 per share, on revenue of $3.0 billion, down 1.7% year-over-year, and achieved its smallest comparable sales decline in over four years at 1.1%. The performance surpassed analyst loss estimates and marked a notable improvement over the prior quarter’s 2.8% drop in comparable sales.
2. Balance Sheet Improvements
Inventory levels improved significantly, falling 8% year-over-year to $2.9 billion, and borrowings under the revolving credit facility were eliminated, down $545 million from a year earlier. These moves strengthened liquidity and reduced leverage, underpinning the company’s financial flexibility.
3. Outlook and Guidance
Management reiterated its annual outlook, forecasting net sales and comparable sales to be flat to a 2% decline and projecting adjusted earnings per share between $1.00 and $1.60. Executives cited ongoing cost discipline, inventory health, and balance sheet strength as drivers for future growth.
