KohlS 2026 Q3 Earnings Sharp Net Income Decline of 63.6% Amid Revenue Drop

Kohl's (KSS) reported fiscal 2026 Q3 earnings on Dec 03, 2025, with revenue falling 2.9% to $3.41 billion and net income plunging 63.6% to $8 million. The results missed expectations, reflecting broader retail sector challenges.

Revenue

Revenue declines were driven by softness across core categories, with women’s apparel leading at $844 million, followed by men’s ($677 million) and accessories ($669 million). Home goods ($464 million) and children’s segments ($453 million) also contributed, though footwear lagged at $300 million. The omnichannel strategy and inventory management remain focal points for stabilization.

Earnings/Net Income

Earnings per share (EPS) fell 60% to $0.08, while net income dropped to $8 million, underscoring margin pressures. The sharp decline highlights the need for cost optimization and strategic reinvestment to restore profitability.

Post-Earnings Price Action Review

The stock’s post-earnings performance highlighted volatility, with a 7% drop on the latest trading day despite a 41.18% monthly gain. A 30-day buy-and-hold strategy post-earnings returned -49.83%, underperforming the benchmark by 134.23%. With a Sharpe ratio of -0.17 and zero maximum drawdown, the strategy exhibited high risk and poor risk-adjusted returns.

CEO Commentary

The CEO emphasized resilience amid macroeconomic headwinds, stating, “We are prioritizing inventory optimization and omnichannel enhancements to drive long-term value.” Strategic investments in store remodels and digital infrastructure were highlighted as critical to improving customer experience. Leadership remains cautiously optimistic, balancing near-term challenges with a focus on operational efficiency.

Guidance

Forward-looking guidance prioritizes stabilizing revenue through targeted promotions and private-label brand expansion. The company aims to strengthen its competitive position by aligning inventory with consumer demand while maintaining disciplined cost management.

Additional News

No non-earnings-related news was disclosed within the specified timeframe for Kohl’s.