KohlS 2026 Q3 Earnings Sharp Net Income Decline of 63.6%

Kohl'S (KSS) reported its fiscal 2026 Q3 earnings on Dec 3, 2025, with results falling short of expectations. The retailer’s total revenue declined by 2.9% to $3.41 billion, while earnings per share (EPS) plummeted 60% to $0.08. Competitor Macy’s raised its annual sales and profit targets, signaling a mixed retail environment. Kohl’S did not adjust its guidance, underscoring persistent challenges in reversing its earnings trajectory.

Revenue

Kohl’S Q3 revenue totaled $3.41 billion, a 2.9% decline from $3.51 billion in the prior year. Segment performance revealed a diversified but uneven sales mix: Women’s revenue amounted to $844 million, while Men’s sales totaled $677 million. Accessories, including the Sephora division, contributed $669 million, and Home segment sales reached $464 million. Children’s apparel generated $453 million, while Footwear sales dipped to $300 million. Other revenue streams added $168 million, bringing net sales to $3.58 billion.

Earnings/Net Income

Kohl’S net income contracted sharply to $8 million in Q3 2026, a 63.6% decline from $22 million in the prior year. EPS fell 60% to $0.08, reflecting margin compression and operational headwinds. The significant drop in profitability underscores the company’s ongoing struggle to stabilize earnings amid competitive pressures.

Price Action

The stock price of KSS fell 7.00% during the latest trading day but gained 2.45% over the prior week. Month-to-date, the shares surged 41.18%, indicating short-term volatility.

Post-Earnings Price Action Review

A strategy of buying KSS after earnings beats and holding for 30 days yielded a -49.83% return, underperforming the benchmark by 134.23%. The approach exhibited high risk, with a Sharpe ratio of -0.17 and no maximum drawdown, highlighting its challenging risk-return profile.

Additional News

No material non-earnings-related news about Kohl’S was reported within the three-week period ending Dec 3, 2025. Updates from competitors like Macy’s (guidance revisions) and industry peers (Coupang’s data breach) did not directly impact Kohl’S operations.