Kohl’s beats Street; offers disappointing outlook

Kohl’s Corp. operates more than 1,100 stores in 49 states.

Kohl’s Corp. topped Street estimates for the holiday quarter and sees rougher waters ahead in its new fiscal year.

But while the company managed to beat analysts’ expectations it was still challenged with falling sales. On the company’s earnings call, CEO Ashley Buchanan, who took the reins in January 2025, discussed his turnaround strategy. The plans include offering a curated, more balanced assortment (with an emphasis on private labels), re-establishing Kohl’s “as a leader in quality and value” and creating a ”frictionless” shopping experience that features a more consistent store and online shopping experience. 

Kohl’s reported net income of $48 million, or $.43 a share, for the quarter ended Feb.1, compared with $186 million, or $1.67 a share, in the year-ago period. Adjusted earnings were $073 per share. Analysts were looking for earnings of $0.73 a share. 

Net sales decreased 9.4% year-over-year to $5.2 billion from $5.7 billion. The fourth quarter of fiscal 2023 included net sales of approximately $164 million from an extra week. Comp sales fell 6.7%. 

For its current fiscal year, Kohl’s predicts net sales will decline 5-7% year-over-year in fiscal 2025, substantially higher than Wall Street forecast of a 1.6% year-over-year drop.

The retailer also expects same-store sales to decline 4-6% year-over-year, substantially more than the 0.9% drop StreetAccount reported that Wall Street analysts had expected. Earnings per share are expected to range between 10 and 60 cents, while London Stock Exchange reports a $1.23 forecast from Wall Street.