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Kohl’s (KSS) investor relations material
Kohl’s Q2 2027 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q2 2026 net sales decreased 0.9% year-over-year to $3.3 billion, with comparable sales also down 0.9%, but gross margin improved by 305 basis points to 43.0% due to $150 million in tariff refunds and operational discipline.
Digital sales grew 2.8% and represented 27% of net sales, while proprietary brands delivered 3% year-over-year growth.
The company remains focused on value, quality, and a frictionless shopping experience, leveraging targeted promotions, expanded digital capabilities, and store enhancements.
Inventory decreased 3% year-over-year to $2.9 billion, supporting trending categories and improving turnover.
The company is restarting its share repurchase program and raised its full-year 2026 outlook.
Financial highlights
Total revenue for Q2 was $3.515 billion, with operating income at $261 million (7.4% margin), and net income at $151 million ($1.28 EPS).
Gross margin improved by 305 basis points to 43.0%, aided by $150 million in tariff refunds, with $100 million benefiting cost of goods sold.
SG&A expenses declined 0.9% to $1.188 billion, flat at 33.8% of revenue; interest expense was $63 million.
Cash and cash equivalents rose to $821 million from $174 million year-over-year.
Debt reduced by $113 million year-to-date through open market repurchases.
Outlook and guidance
Full-year 2026 net and comparable sales expected to decrease 1.5% to flat versus 2025.
Adjusted operating margin projected at 3.5%–4.0%; adjusted EPS forecasted at $1.80–$2.40, including $0.65 from tariff refunds.
Capital expenditures expected between $350 million and $400 million.
Share repurchases of up to $100 million planned for 2026 under the existing $3 billion authorization.
Board declared a quarterly dividend of $0.125 per share, payable September 23, 2026.
- Net sales fell 1.7% with a $14M net loss, but gross margin and digital sales improved.KSS
Q1 2027 - All proposals passed as leadership outlined strategic resets and financial discipline for 2026.KSS
AGM 2026 - Shareholders will vote on director elections, executive pay, auditor ratification, and a revised equity plan.KSS
Proxy filing - Annual meeting covers director elections, compensation, auditor ratification, and plan updates.KSS
Proxy filing - Sales declined but margins and cash flow improved; 2026 outlook remains cautious.KSS
Q4 2026 - Q3 saw lower sales but higher margins, digital growth, and improved cash flow.KSS
Q3 2026 - Sales fell 5.1% but margins and earnings improved, with 2025 guidance raised.KSS
Q2 2026 - Q2 sales fell 4.2%, but margins and EPS improved, led by strong Sephora and accessories growth.KSS
Q2 2025 - Growth driven by new customer segments, merchandising, and operational improvements.KSS
Baird 2024 Global Consumer, Technology & Services Conference
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Frequently asked questions
A modern department store
Kohl's is a retail company that operates department stores across the United States. The company offers a wide range of merchandise, including clothing, accessories, home goods, and electronics. With a focus on providing affordable and quality products, Kohl's aims to cater to various customer needs. The company also offers services such as online shopping, in-store pickup, and a loyalty program to enhance the shopping experience for its customers.
Wisconsin born and bred
Kohl's traces its roots back to 1946 when Max Kohl opened the first Kohl's department store in Milwaukee, Wisconsin. Initially, the store operated as a corner grocery and later expanded into a department store format. Over the years, Kohl's focused on offering quality products at competitive prices, attracting a loyal customer base. Through acquisitions, partnerships, and organic growth, Kohl's has expanded its footprint across the United States.
As of 2024, the company operates over 1,100 department stores all over the country. The growth from the 40’s until today can be attributed to Kohl’s ability to leverage its strong brand, continuing to promote customer loyalty, and by offering a diverse range of merchandise to provide a convenient and enjoyable shopping experience.
A one-stop shopping experience
Kohl's boasts a diverse range of merchandise across various categories. Their apparel section encompasses clothing for men, women, and children, featuring a wide selection of styles and sizes. The accessories department offers a variety of options, including shoes, handbags, and jewelry. In the home goods section, customers can find items such as bedding, bath products, kitchenware, and home decor. Kohl's also provides a range of electronics, toys, and seasonal items to cater to tailor . By keeping their offerings of various items diverse, Kohl's aims to provide customers with a wide array of choices and convenience to fulfill shopping needs.
One thing that makes Kohl’s stand out when compared to their main competitors Target and Walmart is the fact that Kohl’s doesn’t sell groceries and other perishable goods. Instead, their focus is on providing the best shopping experience for customers looking for clothing, accessories, and home goods. This in turn means that the department stores most comparable to Kohl’s are, for example, Nordstrom and Macy’s.
Adapting to changing shopping patterns
Kohl's has been actively expanding its presence in the online retailing sphere, recognizing the shifting consumer preferences. The company has invested in its e-commerce platform, offering customers the convenience of online shopping with features like easy navigation, detailed product information, and secure checkout. With an increasing emphasis on digital initiatives and partnerships, Kohl's is working on providing a seamless online retail experience to cater to the evolving demands of customers.
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