Kohl’s Corporation Reports Results for Third Quarter

November 25, 2025  by HFBusiness Staff in Business Strategy, Industry   

Net sales decreased 2.8% and comparable sales decreased 1.7%

Gross margin increased 51 basis points

Diluted earnings per share (“EPS”) of $0.07 and adjusted diluted EPS of $0.10^(a)

Raises full year 2025 financial outlook

Kohl’s Board of Directors appoints Michael J. Bender as CEO

Michael J. Bender, Kohl’s chief executive officer, said, “We are pleased with Kohl’s third quarter results, marking a third consecutive quarter of delivering top-line and bottom-line performance ahead of our expectations. These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we continue to move in the right direction. We are focused on building on this momentum, as we remain committed to delivering quality products, great value, and a frictionless experience to our customers in an uncertain macroeconomic environment.”

“I am very proud of the work our team has accomplished to date, as we continue to operate our company with strong discipline, deliver solid cash flow generation, and maintain a healthy balance sheet. This will serve as a strong foundation as we reposition Kohl’s for future growth,” Bender continued.

CEO Announcement

As announced on November 24, 2025, Kohl’s Board of Directors appointed Michael Bender as CEO of Kohl’s effective immediately. Mr. Bender has been serving as interim CEO since May 1, 2025, and a board member since 2019.

Third Quarter 2025 Results

Comparisons refer to the 13-week period ended November 1, 2025, versus the 13-week period ended November 2, 2024

Net sales decreased 2.8% year-over-year, to $3.4 billion, with comparable sales down 1.7%.

Gross margin as a percentage of net sales was 39.6%, an increase of 51 basis points.

Selling, general & administrative (SG&A) expenses decreased 2.1% year-over-year, to $1.3 billion. As a percentage of total revenue, SG&A expenses were 35.3%, an increase of 55 basis points year-over-year.

Operating income was $73 million compared to $98 million in the prior year. As a percentage of total revenue, operating income was 2.1%, a decrease of 61 basis points year-over-year. Adjusted operating income was $77 million compared to $98 million in the prior year. As a percentage of total revenue, adjusted operating income was 2.2%. ^(a)

Net income was $8 million, or $0.07 per diluted share, and adjusted net income was $11 million, or $0.10 per adjusted diluted share. This compares to net income of $22 million, or $0.20 per diluted share, in the prior year. ^(a)

Inventory was $3.9 billion, a decrease of 5% year-over-year.

Cash flow provided by operating activities was $124 million compared to a use of $195 million in the prior year.

Borrowings under revolving credit facility were $45 million, a decrease of $704 million year-over-year.

Nine Months Fiscal Year 2025 Results

Comparisons refer to the 39-week period ended November 1, 2025, versus the 39-week period ended November 2, 2024

Net sales decreased 4.0% year-over-year, to $9.8 billion, with comparable sales down 3.2%.

Gross margin as a percentage of net sales was 39.8%, an increase of 39 basis points.

Selling, general & administrative (SG&A) expenses decreased 3.8% year-over-year, to $3.6 billion. As a percentage of total revenue, SG&A expenses were 35.0%, an increase of 20 basis points year-over-year.

Gain on legal settlement was $129 million from a credit card interchange fee lawsuit settlement.

Operating income was $412 million compared to $307 million in the prior year. As a percentage of total revenue, operating income was 4.0%, an increase of 114 basis points year-over-year. Adjusted operating income was $298 million compared to $307 million in the prior year. As a percentage of total revenue, adjusted operating income was 2.9%. ^(a)

Net income was $147 million, or $1.30 per diluted share, and adjusted net income was $61 million, or $0.54 per adjusted diluted share. This compares to net income of $61 million, or $0.55 per diluted share, in the prior year. ^(a)

Cash flow provided by operating activities was $630 million compared to $52 million in the prior year.

Current portion of long-term debt was reduced by $353 million through repayment of the 4.25% notes due July 2025 at maturity.

Long-term debt increased $348 million due to issuance of $360 million of 10.000% senior secured notes due 2030.

2025 Financial and Capital Allocation Outlook

For the full year 2025, the Company currently expects the following:

Net sales: A decrease of (3.5%) to (4%)

Comparable sales: A decrease of (2.5%) to (3%)

Adjusted operating margin: In the range of 3.1% to 3.2% ^(b)

Adjusted diluted EPS: In the range of $1.25 to $1.45 ^(b)

Capital Expenditures: Approximately $400 million

Dividend: On November 12, 2025, Kohl’s Board of Directors declared a quarterly cash dividend on the Company’s common stock of $0.125 per share. The dividend is payable December 24, 2025, to shareholders of record at the close of business on December 10, 2025.

Third Quarter 2025 Earnings Conference Call

webcast of the conference call and the related presentation materials will be available via the Company's web site at investors.kohls.com, both live and after the call.