10-Q · June 4, 2026
Kohl's Corporation reported Q1 2026 earnings with total revenue of $3.17 billion, a 2.05% decrease from the prior year's Q1 of $3.23 billion. Gross margin remained stable at 39.9%, though operating income fell to $46…
Earnings analysis · 10-Q
KSS earnings analysis
Filed September 3, 2026 · Our reading of the company's report
The latest report
Kohl's delivered a mixed Q2: total revenue fell 0.9% year over year to $3.515 billion and diluted EPS declined to $1.28 from $1.35, but gross margin expanded 305 basis points to 43.0%, aided materially by approximately…
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Kohl's delivered a mixed Q2: total revenue fell 0.9% year over year to $3.515 billion and diluted EPS declined to $1.28 from $1.35, but gross margin expanded 305 basis points to 43.0%, aided materially by approximately $100 million of tariff refunds recognized in cost of merchandise sold. Digital sales grew 2.8%, liquidity improved with $821 million of cash, and debt was reduced by $113 million year to date. However, operating cash flow declined to $478 million for the first half, sales remained under pressure, and future margin benefits are exposed to tariff uncertainty.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.28
What stood out
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Sales declined modestly year over year
Q2 total revenue was $3.515 billion, down $31 million, or 0.9%, from $3.546 billion a year ago. Net sales declined 0.9% and comparable sales also decreased 0.9%.
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Tariff refunds lifted gross margin
Gross margin expanded to 43.0% from 39.9%, a 305-basis-point improvement. Approximately $150 million of tariff refunds were received in the quarter, with approximately $100 million recognized in cost of merchandise sold.
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Operating margin remained solid despite sales decline
Operating income was $261 million, or 7.4% of revenue, versus $279 million, or 7.9%, in the prior-year quarter. SG&A declined 0.9% to $1.188 billion and remained 33.8% of revenue.
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Reported EPS declined 5.2%
Diluted EPS was $1.28 versus $1.35 in the prior-year quarter, while net income was $151 million versus $153 million. The prior-year period included a $129 million legal-settlement gain, making reported comparisons non-recurring.
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Digital and selected categories outperformed
Digital sales increased 2.8% year over year and represented 27% of net sales versus 26% last year. Home, Accessories, and Children's performed better than the company average.
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Liquidity and working capital strengthened
Cash and cash equivalents increased to $821 million from $174 million a year ago, while working capital increased to $1.323 billion from $926 million and the current ratio improved to 1.49 from 1.36.
What to watch
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Tariff recovery may not recur
The filing adds expanded global trade-policy risk. Kohl's submitted approximately $185 million of IEEPA refund claims and had received approximately $150 million by August 1, 2026, including approximately $100 million recognized in cost of merchandise sold; remaining refunds remain uncertain, while new tariffs could increase merchandise costs and pressure future margins.
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Expanding ESG compliance burden
The filing adds ESG and sustainability regulatory risk, including product, packaging, and climate-reporting requirements. Kohl's operates 1,151 stores, so compliance costs, sales restrictions, or fines across its retail footprint could affect results and liquidity.
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Cash demands remain elevated
Operating cash flow declined to $478 million for the first half from $506 million a year ago, while inventory increased to $2.913 billion from $2.745 billion at January 31, 2026. The company also expects $350-$400 million of 2026 capital expenditures and plans approximately $100 million of share repurchases, increasing demands on cash generation.
Management's outlook
No numeric revenue or EPS guidance was provided. Management plans approximately $350-$400 million of 2026 capital expenditures and approximately $100 million of 2026 share repurchases.
Earlier filings 4
10-K · March 19, 2026
Kohl’s 10-K emphasizes an omnichannel strategy built on 1,153 U.S. stores, a mix of proprietary and national brands, and distribution through nine retail distribution centers and four e‑commerce fulfillment centers.…
10-Q · December 3, 2025
Kohl’s reported third-quarter total revenue of $3,575 million, down from $3,710 million a year ago, and diluted EPS of $0.07 (vs. $0.20 prior year). Operating income for the quarter declined to $73 million from $98…
10-Q · September 4, 2025
Kohl’s reported total revenue of $3,546 million in the quarter (down from $3,732 million a year ago) and GAAP diluted EPS of $1.35 (up from $0.59). Operating income improved to $279 million versus $166 million in the…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.