Kohl’s (KSS) Q4 2025 earnings summary

Executive summary

• Q4 2024 net sales declined 9.4% year-over-year to $5.2 billion; comparable sales down 6.7%.

• Fiscal year 2024 net sales declined 7.2% to $15.4 billion; comparable sales down 6.5%.

• New CEO Ashley Buchanan outlined a multi-year turnaround plan focused on rebalancing merchandise, restoring value leadership, and enhancing omnichannel experiences.

• Sephora at Kohl's delivered 13% comparable sales growth in Q4, with over 1,000 shops open.

• Inventory increased 2% year-over-year to $2.9 billion; operating cash flow for the year was $648 million.

Financial highlights

• Q4 2024 net sales: $5,175M vs. $5,710M in Q4 2023; full-year net sales: $15.4 billion.

• Gross margin in Q4 was 32.9%, up 49 bps year-over-year; full-year gross margin increased 50 bps to 37.2%.

• SG&A expenses in Q4 decreased 4.5% to $1.5 billion; full-year SG&A down 3.7%.

• Adjusted net income for Q4 was $106 million ($0.95 per diluted share); full-year adjusted net income was $167 million ($1.50 per diluted share).

• Operating cash flow was $596 million in Q4 and $648 million for the year; year-end cash was $134 million.

Outlook and guidance

• 2025 net sales expected to decline 5%-7% versus 2024; comparable sales to decrease 4%-6%.

• Operating margin guidance is 2.2%-2.6%; EPS expected between $0.10 and $0.60 per diluted share.

• Gross margin projected to expand 30-50 bps; SG&A to decline 3.5%-5%.

• Capital expenditures planned at $400-$425 million, focused on Sephora rollout, impulse fixtures, and omnichannel enhancements.

• Dividend reduced to $0.1250 per share to prioritize cash rebuilding and balance sheet flexibility.