Kohl’s Corp. narrowed its loss in the first quarter ended May 3 as sales declined 4.1 percent. The retailer maintained its guidance for the year.

The loss per share of 13 cents exceeded analysts’ consensus expectations, calling for a loss of 22 cents. Revenues of $3.23 billion surpassed analysts’ consensus target of $3.18 billion.

Michael Bender, Kohl’s interim chief executive officer, said, “I am honored to assume the role of interim CEO at such an important time for our company. Kohl’s has a tremendous opportunity to build on our strong foundation of over 1,100 conveniently located stores and a large and loyal customer base.”

“Our first quarter performance was ahead of our expectations and the actions we are taking are starting to make progress with early signs of a positive impact. Our team is focused and motivated to deliver great products, great value, and a great shopping experience to our customers. I want to thank our amazing team of associates for their hard work and dedication. I am excited to lead this next chapter of Kohl’s and build on the momentum we have begun to generate,” Bender continued.

Bender, Kohl’s board chair and a board member since 2019, was appointed  and was appointed interim CEO on May 1 after the retailer reportedly fired former CEO Ashley Buchanan because he had an undisclosed personal relationship with a vendor on a consulting team that made a multimillion-dollar deal with the retailer at his direction.

First Quarter 2025 Results
Comparisons refer to the 13-week period ended May 3, 2025 versus the 13-week period ended May 4, 2024

  • Net sales decreased 4.1 percent year-over-year, to $3 billion, with comparable sales down 3.9 percent.
  • Gross margin as a percentage of net sales was 39.9 percent, an increase of 37 basis points.
  • Selling, general & administrative (SG&A) expenses decreased 5.2 percent year-over-year, to $1.2 billion. As a percentage of total revenue, SG&A expenses were 36.0 percent, a decrease of 32 basis points year-over-year.
  • Operating income was $60 million compared to $43 million in the prior year. As a percentage of total revenue, operating income was 1.9 percent, an increase of 58 basis points year-over-year.
  • Net loss was $15 million, or ($0.13) per diluted share. This compares to net loss of $27 million, or ($0.24) per diluted share in the prior year.
  • Inventory was $3.1 billion, an increase of 2 percent year-over-year.
  • Operating cash flow was a use of $92 million.

2025 Financial and Capital Allocation Outlook
For the full year 2025, the company continues to expect the following, excluding the impact of potential items not representative of our core operating performance:

  • Net sales: A decrease of (5 percent) to a decrease of (7 percent)
  • Comparable sales: A decrease of (4 percent) to a decrease of (6 percent)
  • Operating margin: In the range of 2.2 percent to 2.6 percent
  • Diluted EPS: In the range of $0.10 to $0.60
  • Capital Expenditures: In the range of $400 million to $425 million

Dividend: On May 14, 2025, 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 25, 2025 to shareholders of record at the close of business on June 11, 2025.

Image courtesy Kohl’s