Q4 Sales Drop 3.9% to $5B as Net Income Rises to $125M
Kohl’s Q4 net sales fell 3.9% to $5.0 billion with comparable sales down 2.8%, while operating income rose to $212 million and net income climbed to $125 million ($1.07 per share). Shares slid 4.5% pre-market after the sales miss, and 2026 guidance calls for sales down 2%–flat with EPS of $1–$1.60.
1. Q4 Financial Results
Kohl’s reported net sales of $5.0 billion for the quarter ended Jan. 31, down 3.9% year-over-year, with comparable sales falling 2.8%. For the full year 2025, net sales declined 4% to $14.8 billion, and comparable sales were down 3.1%.
2. Profitability Improvement
Operating income increased to $212 million from $126 million a year earlier, driving a 4.1% operating margin, up 176 basis points. Net income rose to $125 million, or $1.07 per diluted share, compared with $48 million, or $0.43 per share, in the prior year.
3. Turnaround Efforts
Management highlighted progress in bolstering private brands and modernizing operations, launching the Sea and Skye tween clothing line and expanding FLX athleisure. Additional efforts include introducing Babies “R” Us shop-in-shops, adding brands in Sephora beauty sections, and refreshing store layouts.
4. 2026 Guidance and Market Reaction
The company expects 2026 net sales to decline 2% to flat and adjusted diluted EPS of $1.00 to $1.60. Shares tumbled about 4.5% in pre-market trading following the sales shortfall and cautious outlook.