Kohl's Reports Third Quarter Fiscal 2025 Financial Results

MENOMONEE FALLS, Wis.--( BUSINESS WIRE)--Kohl’s Corporation [NYSE:KSS] (“Kohl’s” or the “Company”) today reported results for the third quarter ended November 1, 2025.

Michael J. Bender, Kohl’s Chief Executive Officer, said, “We are pleased with Kohl’s third quarter results, marking a third consecutive quarter of delivering top-line and bottom-line performance ahead of our expectations. These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we continue to move in the right direction. We are focused on building on this momentum, as we remain committed to delivering quality products, great value, and a frictionless experience to our customers in an uncertain macroeconomic environment.”

“I am very proud of the work our team has accomplished to date, as we continue to operate our company with strong discipline, deliver solid cash flow generation, and maintain a healthy balance sheet. This will serve as a strong foundation as we reposition Kohl’s for future growth,” Bender continued.

CEO Announcement

As announced on November 24, 2025, Kohl’s Board of Directors (the “Board”) appointed Michael Bender as CEO of Kohl’s effective immediately. Mr. Bender has been serving as interim CEO since May 1, 2025 and a board member since 2019.

Third Quarter 2025 Results

Comparisons refer to the 13-week period ended November 1, 2025 versus the 13-week period ended November 2, 2024

Nine Months Fiscal Year 2025 Results

Comparisons refer to the 39-week period ended November 1, 2025 versus the 39-week period ended November 2, 2024

Non-GAAP financial measures: Please see the “RECONCILIATION OF NON-GAAP FINANCIAL MEASURES” for a reconciliation of adjusted operating income to operating income, adjusted net income to net income, and adjusted diluted earnings per share to diluted earnings per share.

2025 Financial and Capital Allocation Outlook

For the full year 2025, the Company currently expects the following:

Non-GAAP financial measures: The Company provides adjusted operating margin and adjusted diluted earnings per share on a non-GAAP basis and does not provide a reconciliation of the Company’s forward looking guidance to the most directly comparable GAAP financial measures because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.

Third Quarter 2025 Earnings Conference Call

Kohl’s will host its quarterly earnings conference call at 9:00 am ET on November 25, 2025. A webcast of the conference call and the related presentation materials will be available via the Company's web site at investors.kohls.com, both live and after the call.

Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Measures

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “anticipates,” “plans,” or similar expressions to identify forward-looking statements. Forward-looking statements include, but are not limited to, the information under “2025 Financial and Capital Allocation Outlook.” Such statements are subject to certain risks and uncertainties, which could cause the Company's actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company’s Annual Report on Form 10-K and Item 1A of Part II of the Company’s Quarterly Report on Form 10-Q for the first quarter of fiscal 2025, which are expressly incorporated herein by reference, and other factors as may periodically be described in the Company’s filings with the SEC. Forward-looking statements relate to the date initially made, and the Company undertakes no obligation to update them.

This press release contains certain financial measures that are not prepared in accordance with generally accepted accounting principles (GAAP), including adjusted operating income, adjusted net income and adjusted diluted earnings per share. These non-GAAP financial measures are provided as additional insight into our operational performance and do not purport to be substitutes for, or superior to, operating income, net income, or diluted earnings per share as a measure of operating performance. We believe these adjusted measures are useful, as they are more representative of our core business, enhance comparability across reporting periods and to industry peers, and align with the measures used by management to evaluate the Company’s performance. We caution investors that non-GAAP measures should not be viewed in isolation and should be evaluated in addition to, and not as an alternative for, our results reported in accordance with GAAP. Because companies may use different calculation methods, these measures may not be comparable to other similarly titled measures reported by other companies. A reconciliation of each non-GAAP measure to the most directly comparable GAAP measure is included in this release.

About Kohl's

Kohl’s (NYSE: KSS) is a leading omnichannel retailer built on a foundation that combines great brands, incredible value and convenience for our customers. Kohl’s is uniquely positioned to deliver against its long-term strategy and its purpose to take care of families’ realest moments. Kohl's serves millions of families in its more than 1,100 stores in 49 states, online at Kohls.com, and through the Kohl's App. With a large national footprint, Kohl’s is committed to making a positive impact in the communities it serves. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com.

KOHL’S CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended

Nine Months Ended

(Dollars in Millions, Except per Share Data)

November 1, 2025

November 2, 2024

November 1, 2025

November 2, 2024

Net sales

$ 3,407

$ 3,507

$ 9,803

$ 10,210

Other revenue

168

203

551

614

Total revenue

3,575

3,710

10,354

10,824

Cost of merchandise sold

2,059

2,137

5,904

6,188

Gross margin rate

39.6%

39.1%

39.8%

39.4%

Operating expenses:

Selling, general, and administrative

1,263

1,291

3,626

3,769

As a percent of total revenue

35.3%

34.8%

35.0%

34.8%

Depreciation and amortization

176

184

526

560

Impairments, store closing, and other costs

—

(Gain) on legal settlement

—

(129)

—

Operating income

412

307

Interest expense, net

229

245

(Loss) income before income taxes

(2)

183

(Benefit) provision for income taxes

(10)

—

Net income

$ 8

$ 22

$ 147

$ 61

Average number of shares:

Basic

112

111

112

111

Diluted

115

112

114

112

Earnings per share:

Basic

$ 0.08

$ 0.20

$ 1.32

$ 0.55

Diluted

$ 0.07

$ 0.20

$ 1.30

$ 0.55

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited)

Operating Income

Net Income

Diluted Earnings per Share

(Dollars in Millions, Except per Share Data)

Three Months Ended November 1, 2025

GAAP

$ 73

$ 8

$ 0.07

Impairments, store closing, and other costs

0.04

(Gain) on legal settlement

—

Income tax impact of items noted above

—

(1)

(0.01)

Adjusted (non-GAAP)

$ 77

$ 11

$ 0.10

Three Months Ended November 2, 2024

GAAP

$ 98

$ 22

$ 0.20

Impairments, store closing, and other costs

—

(Gain) on legal settlement

—

Income tax impact of items noted above

—

Adjusted (non-GAAP)

$ 98

$ 22

$ 0.20

Nine Months Ended November 1, 2025

GAAP

$ 412

$ 147

$ 1.30

Impairments, store closing, and other costs

0.14

(Gain) on legal settlement

(129)

(1.14)

Income tax impact of items noted above

—

0.24

Adjusted (non-GAAP)

$ 298

$ 61

$ 0.54

Nine Months Ended November 2, 2024

GAAP

$ 307

$ 61

$ 0.55

Impairments, store closing, and other costs

—

(Gain) on legal settlement

—

Income tax impact of items noted above

—

Adjusted (non-GAAP)

$ 307

$ 61

$ 0.55

KOHL’S CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in Millions)

November 1, 2025

November 2, 2024

Assets

Current assets:

Cash and cash equivalents

$ 144

$ 174

Merchandise inventories

3,895

4,099

Other

269

344

Total current assets

4,308

4,617

Property and equipment, net

7,028

7,472

Operating leases

2,354

2,500

Other assets

454

465

Total assets

$ 14,144

$ 15,054

Liabilities and Shareholders’ Equity

Current liabilities:

Accounts payable

$ 1,842

$ 1,873

Accrued liabilities

1,240

1,245

Borrowings under revolving credit facility

749

Current portion of:

Long-term debt

—

353

Finance leases and financing obligations

Operating leases

Total current liabilities

3,307

4,393

Long-term debt

1,522

1,174

Finance leases and financing obligations

2,388

2,533

Operating leases

2,667

2,799

Deferred income taxes

Other long-term liabilities

254

273

Shareholders’ equity:

3,930

3,804

Total liabilities and shareholders’ equity

$ 14,144

$ 15,054

KOHL’S CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Nine Months Ended

(Dollars in Millions)

November 1, 2025

November 2, 2024

Operating activities

Net income

$ 147

$ 61

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

526

560

Share-based compensation

Deferred income taxes

(33)

Impairments, store closing, and other costs

—

Non-cash lease expense

Other non-cash items

Changes in operating assets and liabilities:

Merchandise inventories

(948)

(1,216)

Other current and long-term assets

(75)

Accounts payable

800

739

Accrued and other long-term liabilities

(26)

(2)

Operating lease liabilities

(72)

(76)

Net cash provided by operating activities

630

Investing activities

Acquisition of property and equipment

(308)

(367)

Proceeds from sale of real estate

Other

Net cash used in investing activities

(269)

(363)

Financing activities

Proceeds from issuance of debt, net of discount

357

—

Deferred financing costs

(11)

—

Net (repayments) borrowings under revolving credit facility

(245)

657

Shares withheld for taxes on vested restricted shares

(5)

(10)

Dividends paid

(42)

(166)

Repayment of long-term borrowings

(353)

(113)

Premium paid on redemption of debt

—

(5)

Finance lease and financing obligation payments

(62)

Proceeds from financing obligations

Net cash (used in) provided by financing activities

(351)

302

Net increase (decrease) in cash and cash equivalents

(9)

Cash and cash equivalents at beginning of period

134

183

Cash and cash equivalents at end of period

$ 144

$ 174