What caused KSS's Q3 2025 EPS to fall below forecasts?

Kohl's (KSS) Q3 2025 EPS fell below forecasts due to a combination of factors:

1. **Sales Decline**: The company has experienced a decline in same-store sales, with the most recent report period showing a 5.1% drop in comparable sales. This decline in sales contributes to lower revenue and, consequently, earnings.
2. **Cost Management**: Despite a reported decline in sales, Kohl's managed to boost its gross margin to 39.6% by reducing the cost of sales, which fell by 5.1% to $2.13 billion. This indicates that the company's cost management efforts have been effective in mitigating the impact of lower sales on profitability.
3. **Market Conditions**: The broader retail environment and consumer spending patterns may also have played a role in Kohl's Q3 performance. Factors such as inflation, consumer confidence, and seasonal trends can significantly impact retailer earnings.

In summary, Kohl's Q3 2025 EPS fell below forecasts due to a combination of sales decline and cost management efforts. The company's ability to manage costs effectively has helped to mitigate the impact of lower sales on earnings.