KohlS 2026 Q3 Earnings Net Income Plummets 63.6%

Kohl’s reported fiscal 2026 Q3 earnings on Dec 3, 2025, with results underscoring a challenging retail environment. The company’s revenue declined 2.9% to $3.41 billion, and its EPS dropped 60% to $0.08. While no formal guidance adjustments were announced, CEO Michelle Gass highlighted persistent consumer spending pressures.

Revenue

Kohl’s total revenue fell to $3.41 billion in 2026 Q3, a 2.9% decline from $3.51 billion in 2025 Q3. Women’s apparel led the way with $844 million in sales, followed closely by men’s clothing at $677 million. Accessories, including the Sephora partnership, contributed $669 million, while home goods and children’s apparel generated $464 million and $453 million, respectively. Footwear sales totaled $300 million, and other revenue sources added $168 million. Net sales reached $3.58 billion, reflecting a mix of segment performances amid broader retail headwinds.

Earnings/Net Income

Kohl’s net income plummeted to $8 million in 2026 Q3, a 63.6% decrease from $22 million in 2025 Q3, while EPS fell to $0.08 from $0.20. The results reflect a significant earnings downturn driven by revenue contraction and operational challenges.

Post-Earnings Price Action Review

The stock’s post-earnings performance highlighted mixed signals: a 7% drop on the latest trading day contrasted with a 2.45% weekly gain and a 41.18% monthly surge. A strategy of buying KSS after earnings beats and holding for 30 days yielded a 10.04% return, far below the benchmark’s 137.15%. Despite a Sharpe ratio of 0.02 and volatility of 75.87%, the strategy’s lackluster returns underscored its underperformance relative to broader market movements.

CEO Commentary

CEO Michelle Gass acknowledged a “challenging retail environment marked by shifting consumer preferences,” emphasizing the need for strategic adaptability.

Additional News

Kohl’s CFO, Jill Timm, filed to sell 25,000 shares of restricted stock via a prearranged trading plan on Dec 4, 2025, executed through Fidelity Brokerage Services. The sale, permitted under SEC Form 144, allows disposition within 90 days. Meanwhile, competitors like Kroger and Dollar General reported mixed results, with Kroger lowering its full-year sales forecast amid intensifying competition for budget-conscious shoppers.

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