Kohl’s (KSS) Q3 2026 earnings summary

Executive summary

• Achieved third consecutive quarter of top- and bottom-line results ahead of expectations, reflecting progress on 2025 initiatives and operational discipline in a challenging macroeconomic environment.

• Net sales declined 2.8% year-over-year to $3.4 billion in Q3, with comparable sales down 1.7%.

• Gross margin improved by 51 basis points to 39.6% in Q3, driven by inventory management and proprietary brand mix.

• Adjusted net income was $11 million ($0.10 per share) in Q3; adjusted operating income was $77 million.

• Michael J. Bender was appointed CEO, completing a leadership transition.

Financial highlights

• Year-to-date net sales fell 4.0% to $9.8 billion; comparable sales down 3.2%.

• Digital sales rose 2.4% in Q3, with digital penetration at 28% of net sales.

• SG&A expenses declined 2.1% to $1.3 billion in Q3; year-to-date SG&A down 3.8%.

• Operating cash flow for the nine months was $630 million, up from $52 million last year.

• Inventory at quarter-end was $3.9 billion, down 5% year-over-year.

Outlook and guidance

• Full-year 2025 net sales expected to decrease 3.5% to 4%; comparable sales projected to decline 2.5% to 3%.

• Adjusted operating margin forecasted at 3.1% to 3.2%; adjusted diluted EPS expected in the range of $1.25 to $1.45.

• Capital expenditures planned at approximately $400 million; quarterly dividend of $0.125 per share declared.

• Inventory expected to remain down low- to mid-single digits.