Kohl’s Q4 EPS $1.07 Beats Estimates, Revenue Tops $5.17B, Margin at 4.1%
Kohl’s Q4 adjusted EPS of $1.07 beat estimates by $0.22 on $5.17B revenue despite a 3.9% net sales decline; operating margin rose to 4.1% and cash reached $674M. Fiscal 2026 guidance calls for net sales down 2% to flat and EPS of $1.00–$1.60 versus $1.39 as Kohl’s targets cautious shoppers.
1. Financial Results
Kohl’s delivered adjusted EPS of $1.07, surpassing estimates by $0.22, on $5.17 billion in revenue. Net sales slipped 3.9% and comparable sales fell 2.8%, but gross margin rose 25 basis points to 33.1%, boosting operating income to $212 million and margin to 4.1%.
2. 2026 Outlook
The retailer forecasts fiscal 2026 net sales down 2% to flat and an adjusted operating margin of 2.8%–3.4%. It projects EPS of $1.00–$1.60 against a $1.39 consensus and plans $350 million–$400 million in capital expenditures.
3. Strategic Initiatives
Management is intensifying its proprietary brand focus through the “By Kohl’s” campaign and inventory adjustments that reduce SKU counts while deepening basics. These moves aim to re-engage low- to middle-income shoppers described as ‘choiceful’ with discretionary spending.
4. Shareholder Dividend
Kohl’s board declared a quarterly cash dividend of $0.125 per share, payable April 1 to holders of record on March 18, underscoring ongoing capital returns despite a cautious sales outlook.