KSS KOHLS Corp

NEUTRAL Impact: 5/10 8-K
Horizon weeks Filed May 28, 2026 Processed 8d 12h ago SEC 0001193125-26-242967
8-K Item 2.02: Earnings release

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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

Guidance
net sales flat to (2%) vs 2025
maintained
Free Cash Flow
-$158.0M
Gross Margin
39.9%

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.

net salesepsoperating incomecomparable salesgross margin

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

Exchange
NYSE
Sector
Retail-Department Stores
Analyst Consensus
10% bullish (21 analysts)

Documents Analyzed

This report is based on 7 SEC documents filed with EDGAR.

DocumentAccession Number
8-K Filing (Primary)0001193125-26-242967
Document: d84873d8k.htm0001193125-26-242967
Document: d84873dex992.htm0001193125-26-242967
Document: 0001193125-26-242967-index-headers.html0001193125-26-242967
Document: 0001193125-26-242967-index.html0001193125-26-242967
Document: 0001193125-26-242967.txt0001193125-26-242967
8-K Data (Synthetic)0001193125-26-242967
6 reports for KSS
Performance horizon
Filters
Rows
Reports for KSS — sortable, filterable
Type Now
May 28, 2026
8d ago
8-K
NEUTRAL ★ 5/10
awaiting T+20
May 20, 2026
16d ago
8-K
NEUTRAL ★ 3/10
awaiting T+20
Apr 15, 2026
7w ago
144
NEUTRAL ★ 2/10
$14.30 $12.73▼ −10.96%▼ −17.00%$15.46 (+8.13%)
Apr 10, 2026
8w ago
DEFA14A
NEUTRAL ★ 3/10
$13.28 $14.35▲ +8.09%▼ −0.44%$15.46 (+16.45%)
Mar 4, 2026
13w ago
8-K
NEUTRAL ★ 3/10
$15.66 $12.78▼ −18.39%▼ −14.61%$15.46 (−1.26%)
Feb 25, 2026
14w ago
8-K
NEUTRAL ★ 3/10
$17.14 $12.69▼ −25.96%▼ −20.73%$15.46 (−9.78%)
Showing 6 of 6

US Market Status

Market Closed — Opens Mon (37h 55m)

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