KohlS KSS 2026Q2 Earnings Preview Downside Risk Amid Sales Pressures

Forward-Looking Analysis
Analysts project Kohl's to report revenue and earnings per share (EPS) for 2026Q2 within the broader fiscal 2025 guidance range. The company expects 2025 sales to decline between 5% and 7%, with comp sales to fall between 4% and 6%, and EPS to range between $0.10 and $0.60 for the year. For the current quarter, analysts have cut EPS expectations significantly, reducing estimates by 32.7% from $1.13 to $0.76 per share over the past 12 months. Given the continued sales declines and weak profitability, investors should expect a challenging report, with the risk of falling short of even the lowered expectations. No major analyst upgrades or downgrades have been noted, but the company's ongoing leadership instability and operational headwinds remain a concern.

Historical Performance Review
Kohl's reported Q1 2025 revenue of $3.05 billion, a decline from $3.18 billion a year prior. The company posted a net loss of $15 million, or $0.13 per share, compared to a $27 million, or $0.24 per share, loss in the prior year. Comparable sales fell 3.9%, slightly better than the 4.1% decline forecasted. Gross profit for the quarter stood at $1.40 billion, showing some resilience amid the sales decline.

Additional News
Kohl's announced the firing of former CEO Ashley Buchanan in May 2025 after reports surfaced that she attempted to funnel business to a romantic partner. Michael Bender was appointed as interim CEO, marking the fourth leadership change in three years. The company reported Q1 results above its preliminary guidance despite the leadership turmoil, with a narrower-than-expected loss of $0.13 per share. No new products, services, or major M&A activity were disclosed in recent reports. The retailer continues to face a difficult operating environment, and its stock fell 25% after the 2025 forecast was released.

Summary & Outlook
Kohl's remains in a challenging financial position, with declining sales, thin margins, and ongoing leadership instability. While Q1 results were slightly better than expected, the broader 2025 outlook reflects a company under pressure, with revenue and comp sales continuing to contract. Gross profit offers some buffer, but the narrowing net income and weak EPS guidance point to structural issues. The company's ability to stabilize leadership and execute strategic cost controls will be key catalysts. With weak consumer demand and limited visibility on a turnaround, the outlook remains bearish in the near term. Investors should brace for further downward pressure unless Kohl's can deliver a compelling turnaround strategy.