Kohl’s Corp. slightly narrowed its loss in the first quarter ended May 2 and exceeded analyst estimates. Same-store sales slipped 1.1 percent, but marked its best showing on a quarterly basis since 2022.

Highlights of the quarter:

  • Net sales decreased 1.7 percent to $3 billion, below analysts’ consensus target of $3.16 billion
  • Comparable sales decreased 1.1 percent
  • Gross margin increased 4 basis points
  • Diluted loss per share of 13 cents compared with analysts’ consensus target of a 14 cents loss
  • Affirms full-year 2026 financial outlook

Michael Bender, Kohl’s chief executive officer, said, “We are pleased with our start to 2026. Our key initiatives continue to drive progressive improvements to the business, resulting in our best comparable sales performance in over four years. In addition, we continue to manage the business with great discipline leading to strong expense management, cleaner inventories, and an improved balance sheet.”

“Moving forward, we remain committed to delivering more value and a better experience to our customers. I would like to extend my sincere gratitude to all of our Kohl’s associates for their dedication and determination to execute against our initiatives,” Bender continued.

First Quarter 2026 Results
(comparisons refer to the 13-week period ended May 2, 2026 versus the 13-week period ended May 3, 2025)

  • Net sales decreased 1.7 percent year-over-year, to $3 billion, with comparable sales down 1.1 percent.
  • Gross margin as a percentage of net sales was 39.9 percent, an increase of 4 basis points year-over-year.
  • Selling, general & administrative (SG&A) expenses decreased 1.6 percent year-over-year, to $1.1 billion. As a percentage of total revenue, SG&A expenses were 36.2 percent, an increase of 15 basis points year-over-year.
  • Operating income was $46 million compared to $60 million in the prior year. As a percentage of total revenue, operating income was 1.4 percent, a decrease of 41 basis points year-over-year.
  • Net loss was $14 million, or 13 cents per diluted share. This compares to net loss of $15 million, or 13 cents per diluted share in the prior year.
  • Inventory was $2.9 billion, a decrease of 8 percent year-over-year.
  • Operating cash flow was a use of $74 million.
  • Borrowings under revolving credit facility were $0, a decrease of $545 million year-over-year.

2026 Full-Year Financial and Capital Allocation Outlook

  • Net sales and comparable sales: A decrease of 2 percent t\o flat
  • Adjusted operating margin: In the range of 2.8 percent to 3.4 percent
  • Adjusted diluted EPS: In the range of $1.00 to $1.60
  • Capital expenditures: In the range of $350 million to $400 million
  • Dividend: On May 20, 2026, Kohl’s Board of Directors declared a quarterly cash dividend on the Company’s common stock of $0.125 per share. The dividend is payable June 24, 2026, to shareholders of record at the close of business on June 10, 2026.

Image courtesy Kohl’s