What were the key takeaways from Kohl'S’s earnings call?

What factors drove the changes in Kohl'S's revenue and profit?

Did Kohl'S beat or miss consensus estimates last quarter?

What is Kohl'S's latest dividend and current dividend yield?

What does Kohl'S do and what are its main business segments?

What were the key takeaways from Kohl'S's earnings call?

What is the revenue and EPS growth rate for Kohl'S year over year?

What is the market's earnings forecast for Kohl'S next quarter?

- **Revenue Recovery**: Q3 comparable sales decline narrowed to 1.7% (vs. 3.2% YTD), with October sales turning positive (+1%).
- **Proprietary Brand Momentum**: Proprietary brands ran a positive comp, led by FLX (double-digit growth) and new home brands like Hotelier. 
- **Customer Reengagement**: Kohl's Card customer sales improved by 500 basis points, driven by coupon eligibility expansion and Kohl's Cash promotions. 
- **Holiday Setup**: Well-stocked with seasonal items and exclusive Sephora brands, targeting +10% growth in jewelry and accessories. 
- **Financial Discipline**: SG&A down 3.8% YTD, operating cash flow $630M, with plans to exit revolver by year-end.

**【CEO Summary Section】**
- **Q3 Performance**: Comparable sales declined 1.7% year-over-year, driven by a recovery in October (+1%) and strong digital sales (+2%). Proprietary brands ran a positive comp, with women's and men's businesses showing improvement. 
- **2025 Initiatives Progress**: 
  - **Assortment Balance**: Reduced choice counts by 10%, increased depth in key categories (e.g., women's dresses, men's tailored). Proprietary brands like FLX expanded into kids' departments. 
  - **Value Proposition**: Added 50 brands to coupon eligibility, reengaging Kohl's Card customers (+500 basis points in Q3). 
  - **Omnichannel Experience**: Rolled out 613 Impulse queuing lines, driving +40% growth. Holiday plans include exclusive gifts and Kohl's Cash promotions. 
- **Holiday Positioning**: Well-stocked with sweaters, fleece, and exclusive Sephora brands (e.g., MAC in 850 stores). Focus on toys (Barbie, LEGO) and home categories with new brands like Hotelier. 

**【CFO Financial Commentary】**
- **Top Line**: Net sales declined 2.8% (Q3) and 4% (YTD). Digital sales grew 2.4%, outpacing stores. 
- **Gross Margin**: Expanded 50 basis points to 39.6% due to inventory management and proprietary brand performance. 
- **Cost Control**: SG&A expenses down 2.1% (Q3) and 3.8% (YTD), driven by store and marketing efficiency. 
- **Cash Flow**: Operating cash flow $630M (YTD), free cash flow $270M. Revolver borrowings reduced by $700M, targeting full exit by year-end. 
- **Guidance**: Full-year net sales decline 3.5%-4%, adjusted EPS $1.25-$1.45. 

**【Q&A Key Highlights】**
- **Cash Flow & Inventory**: Inventory down 5% (Q3), well-positioned for holiday. Operating cash flow expected $1.3B, driven by inventory turns. 
- **Gross Margin Drivers**: Mix shift to soft home (+10% comp) and proprietary brands offset digital shipping costs. Holiday promotions will prioritize value. 
- **Store Strategy**: >90% of stores profitable. Minimal closures expected, focusing on adjacency analysis (e.g., juniors near Sephora). 
- **Brand Performance**: Sephora comp -1% due to macro pressures, but MAC launch in Q1 2026 seen as growth driver. FLX expansion into kids' departments (+300 doors).

Kohl's Corporation (KSS) Q3 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

KSS

KSS fundamentals

You can ask Aime