Kohl's Corporation (KSS) Earnings
Kohl's Corporation is expected to report next earnings on November 24, 2026 (in NaN days), with a consensus EPS estimate of $0.03. KSS has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise +87.2% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 26, 2026 | $0.58 | $1.28 | +119.6% | $3.3B | -0.2% |
| May 28, 2026 | $-0.18 | $-0.13 | +27.8% | $3.0B | +0.1% |
| Mar 10, 2026 | $0.86 | $1.07 | +24.4% | $5.0B | -0.9% |
| Nov 25, 2025 | $-0.13 | $0.10 | +176.9% | $3.6B | +7.4% |
| Aug 27, 2025 | $0.33 | $0.56 | +69.7% | $3.5B | +3.7% |
| May 29, 2025 | $-0.22 | $-0.13 | +40.9% | $3.2B | -3.2% |
| Mar 11, 2025 | $0.72 | $0.95 | +31.9% | $5.4B | +71.1% |
| Nov 26, 2024 | $0.31 | $0.20 | -35.5% | $3.7B | +1.6% |
| Aug 28, 2024 | $0.45 | $0.59 | +31.1% | $3.7B | +3.9% |
| May 30, 2024 | $0.05 | $-0.24 | -542.8% | $3.4B | -0.9% |
| Mar 12, 2024 | $1.28 | $1.67 | +30.5% | $6.0B | +4.5% |
| Nov 21, 2023 | $0.35 | $0.53 | +51.4% | $4.1B | -27.8% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 26, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Strategic Initiatives Progress - **Curated Assortment:** Focused on enhancing assortment clarity and relevance. Home showed strong growth driven by decor and small electrics. Toys performed well due to newness and value positioning. Women’s business faced headwinds in core categories but saw strength in Juniors and active wear. - **Value Leadership:** Refined value proposition through expanded coupon inclusion, VIP cardholder events, and personalized offers. "Buy Kohl's" marketing campaign launched to boost proprietary brand awareness. Back-to-school assortment emphasized items under $25. - **Frictionless Experience:** Improved inventory depth in apparel while reducing choice count to simplify shopping. Enhanced in-store experiences for proprietary brands (Sonoma, Flex, etc.) and partners (Nike, Levi’s). Digital investments included Instacart scaling, DoorDash partnership, and AI-driven Agentic Commerce pilots. ### Operational Highlights - **Customer Engagement:** Kohl’s Charge card customers showed positive momentum (+1% comp), reflecting successful re-engagement strategies. Traffic improved, marking the best quarterly performance since 2019. - **Inventory Management:** Inventory decreased ~3% YoY. Receipts increased 7% to support trending categories like toys and jewelry. Fall seasonal receipts pulled forward to capture early back-to-school demand. - **New Leadership:** Elliot Rogers appointed as Chief Operating Officer; Arianne Parisi named Chief Customer Officer to unify marketing and digital experience. ### Financial Discipline - Strong balance sheet with $821 million in cash and no ABL borrowings. - Gross margin improved significantly, aided by tariff refunds. - SG&A expenses declined, demonstrating operational rigor.
Guidance
- **Comparable Sales:** Raised annual guidance to a range of 1.5% decrease to flat (previously lower). - **Adjusted Operating Margin:** Raised to 3.5% to 4.0%. - **Adjusted EPS:** Raised to $1.80 to $2.40 per diluted share. - **Tariff Impact:** The updated guidance includes an approximate benefit of $0.65 per share from tariff refunds received in Q2. - **Exclusions:** Guidance excludes any future potential tariff refunds. - **Back Half Expectations:** Management expects the back half to perform roughly flat to down 2%, similar to the front half, with potential upside if initiatives continue to progress despite macroeconomic pressures.
Segment performance
The transcript does not provide a breakdown of financial performance by distinct product segments (e.g., Apparel, Home) in terms of absolute revenue or specific revenue contribution percentages. Management highlights relative sales trends for various categories: Home grew 1%, Kids was flat (with Toys up double-digits), Women’s declined 1.5% (though Juniors grew 10%), Men’s improved 100 basis points to be in line with the company, Accessories were flat overall but up mid-single digits excluding Sephora, and Kohl’s Marketplace GMV surged 88%. Proprietary brands increased 3%, while Sephora at Kohl’s declined 4%.
Risks & headwinds
- **Macroeconomic Pressure:** Persistent inflation in essential expenses (gas, food) continues to strain consumer budgets, leading to choiceful discretionary spending. - **Sephora Performance Headwinds:** Expanded distribution of key beauty brands in other channels has pressured Sephora at Kohl’s sales (-4% in Q2); this trend is expected to persist until new brand launches reach scale. - **Inventory Constraints:** Higher-than-anticipated sell-throughs in women’s proprietary brands led to stockouts, negatively impacting top-line performance; however, corrective actions have been taken for the back half. - **Competitive Environment:** Potential deflationary pressures in core categories from mass retailers may impact ticket prices, requiring competitive pricing responses funded by tariff proceeds.
Analyst Q&A
Q: Chuck Grom asked about the trajectory of the Kohl's Charge customer rebound and its implication for proprietary brands and women's business. /
A: Michael Bender explained that the charge customer's recovery (+1% comp) reflects their positive reaction to restored proprietary brands, jewelry, and petites, which they had previously bypassed. He noted that women's business suffered from inventory constraints due to high sell-throughs, but accelerated fall receipts are addressing this. Jill Timm added that this rebound supports future credit revenue projections, which only declined 1% in Q2.
Q: Mark Altschweiger sought details on the drivers behind the 80-cent EPS guidance increase, specifically separating the $0.65 tariff benefit from other factors. /
A: Michael Bender identified credit revenue improvement as the primary driver for the remaining 15 cents. He clarified that the company plans to reinvest tariff proceeds into media, store payroll, and competitive pricing rather than just boosting margins. Consequently, SG&A is expected to remain flat to slightly down, with below-the-line items like interest expense helping to achieve the higher EPS target.
Q: Tracy Cogan queried free cash flow expectations, capital allocation priorities between debt repayment and share buybacks, and whether current trends align with back-half guidance. /
A: Michael Bender projected operating cash flow of $950M-$1B, resulting in free cash flow of ~$600M after CapEx. He stated there is no strict prioritization between debt repurchases and the resumed $100M share buyback program, viewing both as opportunistic given the strong balance sheet. He confirmed confidence that current trends support the guided back-half performance of flat to down 2%.
Q: Dana Telsey asked about consumer sentiment changes, inventory planning for the back half, and performance drivers in Home and Accessories. /
A: Jill Timm described the consumer as financially pressured but stable, prompting a continued focus on value and convenience. Michael Bender outlined plans to keep inventory down low single digits to drive productivity. He highlighted Home's strength from recovered small electrics and decor buys, and Accessories' growth driven by fine and fashion jewelry expansions, including 350 new fine jewelry cases and enhanced fashion fixtures.