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

Kohl's (KSS) reported a 2.9% revenue decline to $3.41 billion for fiscal 2026 Q3, missing expectations of resilience in key segments. The company’s EPS plummeted 60% to $0.08, while net income fell 63.6% to $8 million. Despite raising annual forecasts earlier this year, the latest results underscore persistent operational challenges.

Revenue

Total revenue decreased by 2.9% to $3.41 billion in 2026 Q3, reflecting softer demand across all segments. Women’s apparel led with $844 million, followed by men’s at $677 million, and accessories (including Sephora) contributing $669 million. Home and children’s segments reported $464 million and $453 million, respectively, while footwear saw the smallest share at $300 million. The decline underscores broader retail sector pressures and evolving consumer spending patterns.

Earnings/Net Income

Kohl’s earnings per share (EPS) fell sharply to $0.08 in 2026 Q3, a 60% decline from $0.20 in 2025 Q3. Net income similarly contracted to $8 million, down 63.6% from $22 million. The EPS and net income declines reflect significant operational challenges and highlight the need for strategic reassessment.

Post-Earnings Price Action Review

The stock price of Kohl’s dropped 7.00% during the latest trading day but edged up 2.45% over the most recent full trading week, surging 41.18% month-to-date. The strategy of buying KSS when earnings beat and holding for 30 days resulted in a significant loss, returning -49.83%, underperforming the benchmark by 134.23%. With a maximum drawdown of 0% and a Sharpe ratio of -0.17, the strategy had a high risk and volatility, indicating a challenging risk-return profile.

CEO Commentary

Kohl’s CEO Michael Ullman (Chief Executive Officer)

emphasized operational adjustments and cost discipline during the earnings call, stating, “We are focused on streamlining our operations and enhancing customer experiences to drive long-term value.” Ullman acknowledged the revenue decline but highlighted progress in store modernization and digital initiatives. He reiterated confidence in the company’s ability to adapt to market dynamics while prioritizing profitability.

Guidance

Kohl’s provided cautious guidance for the remainder of fiscal 2026, projecting revenue growth of 1-3% for the full year and maintaining a net income target range of $50-$60 million. The company emphasized strategic investments in e-commerce and private-label brands to offset macroeconomic headwinds.

Additional News

1. Macy’s Raises Annual Targets: Macy’s (M.N) lifted its 2025 sales forecast to $21.475–$21.625 billion, citing successful store closures and digital expansion.

2. Coupang Security Breach: South Korean e-commerce giant Coupang disclosed a data breach affecting millions, with hackers using multiple IP addresses to avoid detection.

3. Kruger Products’ Financing Update: Kruger Products Inc. (KPI) announced a senior unsecured note offering to strengthen liquidity, with proceeds allocated to general corporate purposes.