KSS KOHLS Corp
Price Chart
Executive Summary
Kohl's reported Q1 FY2026 net sales of $2.998B (down 1.7% YoY) and a diluted loss per share of ($0.13), in line with the prior year's loss. Comparable sales improved to -1.1%, the best performance in over four years. The company affirmed its full-year 2026 guidance: net sales flat to (2)% decline, adjusted diluted EPS of $1.00-$1.60. While revenue continued to decline, the results showed sequential improvement in comparable sales and gross margin stability, but operating income fell to $46M from $60M and operating cash flow was negative $74M. The stock's highly bearish consensus (89% sell/strong sell) suggests the market expected more, but the guidance affirmation prevents a further negative catalyst.
Key Financial Metrics
Actionable Insight
The Q1 report showed operational stabilization (best comp in 4+ years) and affirmed full-year guidance, which should cap downside after the 89% sell-side bearish consensus. However, with negative operating cash flow and continued revenue decline, the stock lacks a near-term catalyst. Watch for the back-to-school season and Sephora MAC rollout in Fall 2026 as potential inflection points.
Key Facts
- Net sales down 1.7% YoY to ~$3.0B; comparable sales down 1.1% (best in 4+ years)
- Diluted loss per share ($0.13), same as prior year; net loss $14M vs $15M YoY
- Gross margin 39.9% (+4 bps YoY); SG&A down 1.6% but deleveraged 15 bps as % of revenue
- Operating income fell to $46M from $60M; operating cash flow was negative $74M
- Full-year 2026 guidance affirmed: net sales flat to (2)%, adjusted EPS $1.00-$1.60, capex $350-400M
- Quarterly dividend maintained at $0.125/share; repaid $50M of debt at a discount in Q1
- Balance sheet improved: no revolver borrowings ($0 vs $545M a year ago), $429M cash
Financial Impact
Net sales $2.998B vs consensus $3.03B (slight miss); diluted EPS ($0.13) vs consensus ($0.18) (beat on loss being smaller than forecast). Revenue declined 1.7% YoY; no other quantifiable financial impact specified.
Risk Factors
- Continued net sales decline (down 1.7% YoY) with no sign of positive growth in guidance (flat to down 2%)
- Negative operating cash flow ($74M use) despite improved inventory management; need to see cash flow turn positive
- High leverage (4.2x net debt+leases/EBITDAR unadjusted) constrains financial flexibility
- 89% analyst sell/strong sell rating reflects deep skepticism on turnaround
Market Snapshot
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-242967 |
| Document: d84873d8k.htm | 0001193125-26-242967 |
| Document: d84873dex992.htm | 0001193125-26-242967 |
| Document: 0001193125-26-242967-index-headers.html | 0001193125-26-242967 |
| Document: 0001193125-26-242967-index.html | 0001193125-26-242967 |
| Document: 0001193125-26-242967.txt | 0001193125-26-242967 |
| 8-K Data (Synthetic) | 0001193125-26-242967 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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May 28, 2026
8d ago
|
8-K
| — | awaiting T+20 | — | — |
|
May 20, 2026
16d ago
|
8-K
| — | awaiting T+20 | — | — |
|
Apr 15, 2026
7w ago
|
144
| $14.30 $12.73 | ▼ −10.96% | ▼ −17.00% | $15.46 (+8.13%) |
|
Apr 10, 2026
8w ago
|
DEFA14A
| $13.28 $14.35 | ▲ +8.09% | ▼ −0.44% | $15.46 (+16.45%) |
|
Mar 4, 2026
13w ago
|
8-K
| $15.66 $12.78 | ▼ −18.39% | ▼ −14.61% | $15.46 (−1.26%) |
|
Feb 25, 2026
14w ago
|
8-K
| $17.14 $12.69 | ▼ −25.96% | ▼ −20.73% | $15.46 (−9.78%) |
US Market Status
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