Key Highlights

  • Q4 net sales totaled $4.97 billion, declining 3.9% year-over-year and falling short of the $5.02–$5.03 billion analyst projection
  • Comparable sales decreased 2.8%, significantly exceeding the anticipated 1.5% reduction
  • Adjusted earnings per share reached $1.07, surpassing the 86-cent consensus, though revenue shortfall dominated investor sentiment
  • Annual guidance projects comparable sales between flat and down 2%, trailing analyst forecasts
  • Store visits declined 5% during Q4, contrasting with Ross Stores’ 11.9% increase

Shares of Kohl’s experienced a sharp decline of up to 9% during premarket trading Tuesday following the department store chain’s announcement of holiday quarter results that fell short of expectations and a conservative forecast for the upcoming fiscal year. Year-to-date, the stock has retreated approximately 28% in 2026.

The company’s fourth-quarter revenue reached $4.97 billion, representing a 3.9% year-over-year decrease and missing Wall Street’s projected range of $5.02–$5.03 billion. Comparable sales contracted 2.8%, substantially exceeding the forecasted 1.5% decline.


KSS Stock Card
Kohl’s Corporation, KSS

Earnings provided a silver lining. The company posted adjusted EPS of $1.07, comfortably exceeding the consensus estimate of 86 cents. However, investors focused primarily on the revenue disappointment.

Michael Bender, who assumed the permanent CEO position in November, recognized that quarterly performance fell below expectations. “We are ending 2025 in a stronger position than we started, with important work still ahead of us,” he stated in the company’s release.

Bender characterized the organization as “resetting its foundation,” language that indicates an ongoing transformation process requiring sustained effort.

Another Year of Comparable Sales Pressure

The annual outlook provided limited optimism for investors. Kohl’s projected comparable net sales ranging from flat to down 2% for the current fiscal year. Wall Street had anticipated a more modest 0.7% decline.

The company’s adjusted EPS guidance spans $1.00 to $1.60, placing the midpoint at $1.30—trailing the $1.39 analyst consensus. The breadth of this range reflects considerable uncertainty about future performance.

Should comparable sales decline materialize, the retailer would face its fifth consecutive year of same-store sales contraction.

Data from Placer.ai highlights the magnitude of the challenge facing the company. Store traffic fell 5% during the October-December quarter. Meanwhile, Ross Stores experienced an 11.9% surge in foot traffic over the identical timeframe.

Competitive Pressure Intensifies

Amazon and discount retailers have steadily captured market share from Kohl’s over recent quarters. Cautious consumer discretionary spending patterns have compounded these headwinds, while merchandising missteps have dampened customer demand.

Frequent leadership transitions have marked recent years at the company. Bender’s November appointment aims to provide the stability and strategic vision required for successful transformation.

Despite current-year weakness, KSS delivered impressive gains over the trailing 12 months—climbing approximately 62% following a brief period as a meme stock sensation last summer and exceeding earnings expectations in November.

Shares have fallen 27–28% during the first months of 2026.