KohlS 2026 Q1 Earnings Misses Targets as Net Loss Narrows by 44.4%

Kohl's Corporation (KSS) reported its fiscal 2026 Q1 earnings on May 29th, 2025. Kohl's posted a net loss of $15 million, or $0.13 per share, which was better than analysts' expectations of a $0.22 loss per share. The retailer reaffirmed its full-year guidance despite navigating uncertainties, including tariffs. Kohl's expects comparable sales to decline between 4% and 6%, while diluted EPS is projected to be between $0.10 and $0.60 for the year. Capital expenditures are expected to range from $400 million to $425 million.

Revenue
Kohl's reported a total revenue decrease of 4.1%, amounting to $3.05 billion in fiscal Q1 2026, down from $3.18 billion in Q1 2025.

Earnings/Net Income
Kohl's narrowed its losses significantly, with a net loss of $15 million in 2026 Q1 compared to $27 million in 2025 Q1, representing a 44.4% improvement. EPS also improved from a loss of $0.24 per share in 2025 Q1 to $0.13 per share in 2026 Q1, indicating a positive trajectory in earnings performance.

Price Action
The stock price of Kohl's tumbled 11.65% during the latest trading day, edged up 2.94% during the most recent full trading week, and surged 15.19% month-to-date.

Post Earnings Price Action Review
The investment strategy of purchasing Kohl's shares following a revenue miss, then holding for 30 days, has proven ineffective. A comprehensive backtest revealed a substantial loss of 71.14%, coupled with an excess return of -155.02%. The Sharpe ratio stood at -0.36, underscoring the strategy's failure to yield positive returns or offer risk-adjusted benefits. The maximum drawdown of 91.77% further accentuates the high-risk nature of this approach. These figures highlight the need for a revised strategy to better navigate post-earnings volatility for Kohl's shares.

CEO Commentary
Michael Bender, Interim CEO of Kohl's Corporation, expressed optimism about the company's future, stating, "Kohl's has a substantial opportunity to better serve our customers every day." He acknowledged recent challenges but emphasized the importance of reassessing and committing to a forward path. Bender highlighted the successful first-quarter performance, which exceeded expectations and noted that the company is focusing on customer-driven initiatives, emphasizing collaboration and accountability. He stated, "We have a tremendous opportunity to build on this foundation," reinforcing the commitment to excellence and execution in meeting customer needs while expressing gratitude to the Kohl's team for their dedication.

Guidance
Kohl's expects comparable sales to decline between 4% to 6%, operating margin to range from 2.2% to 2.6%, and diluted earnings per share (EPS) to be between $0.10 and $0.60 for the year. The company anticipates capital expenditures (CAPEX) of $400 million to $425 million, primarily for the completion of the Sephora rollout and other strategic initiatives. Bender noted, "We believe we can achieve our financial guidance for the year," despite navigating uncertainties, particularly regarding tariffs and customer pressures.

Additional News
In recent weeks, Kohl's has experienced significant leadership changes, with the firing of CEO Ashley Buchanan for cause, following an investigation into business conduct irregularities. Interim CEO Michael Bender has stepped in, expressing confidence in steering the company forward. Additionally, Kohl's announced a quarterly cash dividend of $0.125 per share, payable on June 25, 2025. The company continues to focus on strategic initiatives, including the completion of the Sephora rollout, to enhance customer experience and drive future growth.