KohlS KSS 2026Q1 Earnings Preview Downside Ahead on Revenue Decline and EPS Challenges

Forward-Looking Analysis
Kohl's Corporation is expected to report a decline in top-line performance for the first quarter of fiscal 2026. The Zacks Consensus Estimate indicates a potential revenue shortfall. Previously, fiscal 2025 forecasts had projected net sales to decrease by 5-7%, reflecting ongoing challenges in consumer demand. Analysts have also revised expectations downward, with the stock target price forecast for May 2025 suggesting limited upside at $7.60, albeit with notable volatility. A critical factor remains the EPS, which previously missed consensus estimates significantly. Investors are keenly aware of these dynamics, and the anticipation is that Kohl's will continue navigating financial headwinds as it undergoes a strategic turnaround under new leadership. The upcoming earnings report will be pivotal in confirming these projections and assessing the company's ability to stabilize its financial trajectory amidst market pressures.

Historical Performance Review
In the fourth quarter of 2025, Kohl's reported revenues of $5.17 billion, with a net income of $48.00 million, translating to an EPS of $0.43. The gross profit stood at $1.92 billion. Despite positive revenue figures, the net income and EPS results highlighted the challenges Kohl's faced in maintaining profitability. These results underscored the necessity for strategic adjustments to bolster financial health and address shareholder concerns.

Additional News
Kohl's is undergoing a strategic turnaround under the guidance of its new CEO, aiming to address declining sales and profitability issues. The retailer has forecasted a 5-7% drop in fiscal 2025 net sales, reflecting ongoing difficulties in capturing consumer interest and market share. Investor sentiment has been cautious, following significant stock volatility and a recent 25% drop in share value. Kohl’s management is focused on implementing long-term recovery strategies amidst these challenges, with the upcoming earnings report serving as a critical benchmark for assessing the effectiveness of these initiatives.

Summary & Outlook
Kohl's financial health remains under scrutiny as it confronts declining revenues and profitability pressures. The anticipated earnings shortfall in 2026Q1 underscores ongoing risks, particularly in EPS performance. Growth catalysts are centered around strategic turnaround efforts under new leadership, though immediate results may remain elusive. Overall, the outlook for Kohl's is bearish, given the persistent challenges in reversing sales declines and achieving consistent profitability. Investors should remain cautious, as the company's current trajectory suggests continued volatility and strategic uncertainty.