Kohl’s Corporation Reports Results for First Quarter

May 28, 2026  by Karen Parrish in Business Strategy, Industry   

Net sales decreased 1.7% and comparable sales decreased 1.1%

Gross margin increased 4 basis points

Diluted loss per share of ($0.13)

Affirms full year 2026 financial outlook

Michael Bender, Kohl’s CEO, said “We are pleased with our start to 2026. Our key initiatives continue to drive progressive improvements to the business, resulting in our best comparable sales performance in over four years. In addition, we continue to manage the business with great discipline leading to strong expense management, cleaner inventories, and an improved balance sheet.”

“Moving forward, we remain committed to delivering more value and a better experience to our customers. I would like to extend my sincere gratitude to all of our Kohl’s associates for their dedication and determination to execute against our initiatives,” Bender continued.

First Quarter 2026 Results

Comparisons refer to the 13-week period ended May 2, 2026 versus the 13-week period ended May 3, 2025

Net sales decreased 1.7% year-over-year, to $3 billion, with comparable sales down 1.1%.

Gross margin as a percentage of net sales was 39.9%, an increase of 4 basis points year-over-year.

Selling, general & administrative (SG&A) expenses decreased 1.6% year-over-year, to $1.1 billion. As a percentage of total revenue, SG&A expenses were 36.2%, an increase of 15 basis points year-over-year.

Operating income was $46 million compared to $60 million in the prior year. As a percentage of total revenue, operating income was 1.4%, a decrease of 41 basis points year-over-year.

Net loss was $14 million, or ($0.13) per diluted share. This compares to net loss of $15 million, or ($0.13) per diluted share in the prior year.

Inventory was $2.9 billion, a decrease of 8% year-over-year.

Operating cash flow was a use of $74 million.

Borrowings under revolving credit facility were $0, a decrease of $545 million year-over-year.

2026 Financial and Capital Allocation Outlook

For the full year 2026, the Company continues to expect the following:

Net sales and Comparable sales: A decrease of (2%) to flat

Adjusted Operating margin: In the range of 2.8% to 3.4% ^(a)

Adjusted Diluted EPS: In the range of $1.00 to $1.60 ^(a)

Capital Expenditures: In the range of $350 million to $400 million

Dividend: On May 20, 2026, 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 June 24, 2026 to shareholders of record at the close of business on June 10, 2026.

(a) Non-GAAP financial measures: The Company provides adjusted operating margin and adjusted diluted earnings per share on a non-GAAP basis and does not provide a reconciliation of the Company’s forward looking guidance to the most directly comparable GAAP financial measures because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.

First Quarter 2026 Earnings Conference Call

Kohl’s will host its quarterly earnings conference call on May 28, 2026. A 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.