Kohl's (KSS) Q3 Earnings call transcript Nov 26, 2025
1min read Kohl's Corporation held its third quarter 2024 earnings call, revealing a complex mix of challenges and strategic moves aimed at positioning the company for future growth. The call, led by Michael Bender, Independent Chair of the Board, and Tom Kingsbury, CEO, provided insights into the company's financial performance and future outlook.
Financial Performance and Challenges
The third quarter results fell short of expectations, with sales declining by 9% compared to the previous year. This decline was attributed to a number of factors, including a reduction in traffic, especially during the back-to-school season, and a decrease in receipts in private apparel brands. Despite these challenges, Kohl's is optimistic about its future, particularly with the appointment of Ashley Buchanan as the new CEO, effective January 15, 2025.
Strategic Moves and Future Growth
Kohl's is focusing on several key areas to drive growth, including Sephora, Home Decor, Gifting and Impulse, and the underpenetrated categories of Baby Care and Home Decor. Sephora, which has been a significant contributor to Kohl's success, continued to deliver strong growth in Q3, with total beauty sales increasing by 15%. The company is also expanding its gifting assortment and introducing Babies "R" Us shops in 200 of its stores.
Looking Ahead
Looking forward, Kohl's expects a highly competitive holiday season, with a focus on maximizing the big shopping days. The company is also investing in marketing and customer engagement, with a particular emphasis on attracting new customers and re-engaging those who may have been alienated by previous changes.
Investor Takeaways
The earnings call provided a comprehensive overview of Kohl's financial performance and strategic direction, highlighting both challenges and opportunities. Investors will be closely watching the company's execution of its growth initiatives, particularly in the areas of Sephora and Babies "R" Us, as well as its ability to recover from the sales decline in its core business.
In summary, Kohl's Corporation's third quarter earnings call highlighted both challenges and strategic moves aimed at positioning the company for future growth. With a new CEO set to take over and a focus on key growth areas, Kohl's is poised to navigate the complex retail landscape and capitalize on opportunities in the underpenetrated categories of Baby Care and Home Decor. As the holiday season approaches, investors will be closely watching Kohl's execution of its strategic initiatives and its ability to recover from the sales decline in its core business.