Key Takeaways
- Q4 net sales declined 3.9% to $4.97 billion, falling short of the $5.02–$5.03 billion analyst projection
- Comparable sales decreased 2.8%, significantly worse than the anticipated 1.5% drop
- Adjusted earnings per share of $1.07 exceeded the 86-cent forecast, though revenue shortfall dominated investor sentiment
- Annual guidance projects comparable sales between flat and down 2%, trailing analyst predictions
- Store visits declined 5% during Q4, contrasting with Ross Stores’ 11.9% traffic increase
Shares of Kohl’s tumbled as much as 9% during premarket hours Tuesday following the department store chain’s disappointing holiday period results and conservative projections for the coming fiscal year. Year-to-date in 2026, the stock has declined approximately 28%.
Fourth-quarter net sales totaled $4.97 billion, representing a 3.9% year-over-year decrease and missing Wall Street’s $5.02–$5.03 billion target. Comparable sales dropped 2.8% — significantly worse than the 1.5% reduction analysts had anticipated.
The single silver lining emerged on the earnings front. Adjusted earnings per share reached $1.07, exceeding the consensus estimate of 86 cents. However, investors focused primarily on the revenue disappointment.
CEO Michael Bender, who assumed the permanent leadership position in November, admitted the quarter underperformed expectations. “We are ending 2025 in a stronger position than we started, with important work still ahead of us,” he stated in a company release.
Bender characterized the organization as “resetting its foundation,” language that suggests an extended turnaround process rather than an immediate recovery.
Fifth Consecutive Year of Sales Declines Looms
The annual forecast offered limited encouragement 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 of $1.00 to $1.60 places the midpoint at $1.30 — trailing the $1.39 analyst consensus. The breadth of this range indicates considerable uncertainty among company leadership.
Should comparable sales decline again, it would represent the fifth consecutive year of same-store sales deterioration for the retailer.
Foot traffic metrics from Placer.ai highlight the retailer’s struggle. Throughout the October-December quarter, store visits at Kohl’s fell 5%. During the identical timeframe, Ross Stores experienced an 11.9% surge in foot traffic.
Customer Migration Patterns
Amazon and discount retailers have steadily captured market share from Kohl’s across multiple quarters. Sluggish U.S. consumer discretionary spending has compounded these challenges, while persistent merchandising missteps have further dampened demand.
The company has experienced considerable executive turnover in recent years. Bender’s November appointment aimed to provide continuity and strategic focus for the recovery initiative.
Despite near-term weakness, KSS shares surged approximately 62% over the trailing twelve months — gaining momentum after becoming a meme stock sensation last summer and delivering an earnings surprise in November.
The stock has retreated 27–28% thus far in 2026.
