Kohl's (KSS) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: 2.33%
• Average Volume (3M): 5.19M
• Price to Earnings (P/E): 3.9
• Beta (1Y): 2.12
• Revenue Growth: -6.13%
• EPS Growth: -22.57%
• Country: US
• Employees: 87,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 1.07
• Shares Outstanding: 112,189,190
• 10 Day Avg. Volume: 8,234,439
• 30 Day Avg. Volume: 5,190,329
• PEG Ratio: 0.05
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 1.77
• Enterprise Value/Market Cap: 5.30
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 1.28
• Enterprise Value/Ebitda: 5.59
• 1Y Price Target: $15.64
• Price Target Upside: 25.80% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.36
• Revenue Forecast (FY): $14.65B

• Rating: 50 Neutral
• Price Target: $12.50 ▲(0.56% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score reflects mixed fundamentals led by improved cash flow and operational cost discipline, but weighed down by an ongoing multi-year sales decline and meaningful leverage. Technicals are notably bearish with the stock below key moving averages and negative MACD, and valuation looks demanding due to a very high P/E despite a moderate dividend yield. Earnings call guidance was cautious, reinforcing that a top-line turnaround is still uncertain.

Positive Factors

Cash generation

Materially stronger operating and free cash flow in the TTM provides durable funding capacity for capex, dividends and debt reduction. Improved cash generation reduces reliance on short-term borrowing and gives management flexibility to invest in omnichannel and inventory refresh initiatives.

Margin and inventory discipline

Sustained gross margin expansion and tighter inventory reduce markdown risk and improve working-capital efficiency. Lower clearance rates and fresher receipts support healthier full-price sell-through and create a more stable margin base versus peers reliant on high promotional activity.

Omnichannel and brand momentum

Progress on digital, store-enabled fulfillment and stronger shop-in-shop partnerships (Sephora, MAC rollout) and pockets of proprietary-brand strength increase customer reach and basket depth. These durable omnichannel capabilities support long-term customer retention and higher-margin category growth.

Negative Factors

Multi-year sales decline

A persistent top-line contraction across multiple years erodes scale advantages and limits operating leverage. Continued revenue decline pressures SG&A absorption, compresses margins, and makes deleveraging and consistent profit recovery dependent on sustained traffic and category turnarounds.

Elevated leverage

Meaningful leverage for a department-store profile raises sensitivity to sales volatility and interest-cost shocks. Even with some debt reduction recently, elevated leverage constrains strategic optionality, increases refinancing risk, and heightens the importance of consistent cash conversion to repair the balance sheet.

Transaction and credit revenue weakness

Declines in credit-related and transaction-driven revenue remove a higher-margin earnings component and signal weaker customer engagement. A prolonged drag on the Kohl’s Card ecosystem and below-par transaction counts will make margin recovery and lifetime-value improvements harder, even with product and digital fixes.

Kohl's Business Overview & Revenue Model

Company Description

Kohl's Corporation operates as a retail company in the United States. It offers branded apparel, footwear, accessories, beauty, and home products through its stores and website. The company provides its products primarily under the brand names of Apt. 9, Croft & Barrow, Jumping Beans, SO, and Sonoma Goods for Life, as well as Food Network, LC Lauren Conrad, Nine West, and Simply Vera Vera Wang. As of March 21, 2022, it operated approximately 1,100 Kohl's stores and a website www.Kohls.com. Kohl's Corporation was founded in 1988 and is headquartered in Menomonee Falls, Wisconsin.

How the Company Makes Money

Kohl’s primarily makes money by selling merchandise to consumers through its stores and e-commerce channels, recognizing revenue at the point of sale (in-store) or upon shipment/fulfillment (online), net of returns and discounts. Its core revenue stream is retail merchandise sales across categories such as women’s, men’s, kids, and home, with profitability influenced by product mix (e.g., national vs. private brands), promotional activity, and inventory management/markdowns. In addition to merchandise sales, Kohl’s generates revenue through other sources such as credit-related arrangements tied to the Kohl’s Card/loyalty ecosystem (e.g., income associated with its credit program; the specific contractual structure and accounting treatment depend on its current agreements) and other non-merchandise revenues (e.g., certain service or miscellaneous revenues reported outside net sales when applicable). The company also uses partnerships and shop-in-shop concepts to drive traffic and sales; a notable example is its long-running partnership with Sephora, where Sephora at Kohl’s locations and online offerings are intended to increase beauty category sales and attract incremental customer visits that can translate into broader basket purchases.

Kohl's Financial Statement Overview

Summary

Financials point to a recovery that is not yet stable: revenue continues to decline and margins remain thin, but profitability improved versus FY2025 and cash generation strengthened materially in TTM (operating cash flow ~$1.38B; free cash flow ~$1.16B). Balance sheet leverage remains meaningful (elevated debt-to-equity), increasing risk if sales pressure persists.

Income Statement

Results show a clear top-line downtrend, with revenue declining across the multi-year period and down again in TTM (Trailing-Twelve-Months) (about $15.5B vs. $16.2B in FY2025 and $19.4B in FY2022). Profitability is positive in TTM (Trailing-Twelve-Months) (net income ~$271M), and operating profitability improved versus FY2025 (higher operating and EBITDA margins). However, net margins remain thin (~1.2% in TTM (Trailing-Twelve-Months)) and earnings have been volatile over the cycle (loss in FY2023, strong FY2022), which limits the score despite the recent rebound.

Balance Sheet

Leverage is meaningful for a department store profile: debt-to-equity is elevated (around ~1.7x in TTM (Trailing-Twelve-Months) and ~1.9–2.0x in recent annual periods), which increases sensitivity to operating swings. A positive is that total debt appears lower in TTM (Trailing-Twelve-Months) versus prior annual figures. Return on equity has recovered to a modest level in TTM (Trailing-Twelve-Months) (~5%), but it remains well below FY2022 levels and reflects a business still rebuilding profitability.

Cash Flow

Cash generation strengthened materially in TTM (Trailing-Twelve-Months): operating cash flow (~$1.38B) and free cash flow (~$1.16B) are well above FY2025 levels, and free cash flow growth is positive. The main caution is conversion quality versus earnings: free cash flow is below net income in TTM (Trailing-Twelve-Months) (free cash flow to net income < 1), and historical cash flow has been volatile (notably negative free cash flow in FY2023). Overall, current-period cash flow momentum is a relative bright spot.

Breakdown	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	15.53B	16.22B	17.48B	18.10B	19.43B
Gross Profit	5.60B	5.82B	6.23B	5.83B	7.16B
EBITDA	1.21B	1.18B	1.47B	1.05B	2.32B
Net Income	272.00M	109.00M	317.00M	-19.00M	938.00M
Balance Sheet
Total Assets	13.36B	13.56B	14.01B	14.35B	15.05B
Cash, Cash Equivalents and Short-Term Investments	674.00M	134.00M	183.00M	153.00M	1.59B
Total Debt	6.63B	7.16B	7.38B	7.57B	6.79B
Total Liabilities	9.31B	9.76B	10.12B	10.58B	10.39B
Stockholders Equity	4.05B	3.80B	3.89B	3.76B	4.66B
Cash Flow
Free Cash Flow	1.10B	182.00M	591.00M	-544.00M	1.67B
Operating Cash Flow	1.48B	648.00M	1.17B	282.00M	2.27B
Investing Cash Flow	-333.00M	-467.00M	-562.00M	-783.00M	-570.00M
Financing Cash Flow	-603.00M	-230.00M	-576.00M	-933.00M	-2.38B

Kohl's Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KSS, the sentiment is Negative. The current price of 12.43 is below the 20-day moving average (MA) of 14.69, below the 50-day MA of 16.92, and below the 200-day MA of 15.49, indicating a bearish trend. The MACD of -1.45 indicates Positive momentum. The RSI at 27.79 is Positive, neither overbought nor oversold. The STOCH value of 10.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KSS.

Kohl's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDS	65 Neutral	$9.23B	16.61	30.03%	3.99%	-1.07%	-5.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
M	60 Neutral	$4.75B	8.44	8.71%	3.23%	-2.83%	184.32%
SHOO	56 Neutral	$2.32B	66.08	5.21%	1.97%	6.26%	-66.51%
VSCO	54 Neutral	$3.60B	28.27	24.58%	―	2.97%	9.85%
KSS	50 Neutral	$1.39B	3.91	6.91%	2.33%	-6.13%	-22.57%

Kohl's Corporate Events

Kohl’s Reports 2025 Results and Sets 2026 Outlook

On March 10, 2026, Kohl’s reported fourth-quarter and full-year fiscal 2025 results for the period ended January 31, 2026, showing net sales declines of 3.9% in the quarter and 4.0% for the year, with comparable sales down 2.8% and 3.1%, respectively, but improved profitability as gross margin expanded and operating income rose to $212 million in Q4 and $624 million for the year. The company generated significantly higher operating cash flow, reduced reliance on its revolving credit facility, refinanced portions of its debt stack, and, despite softer-than-expected Q4 topline performance, underscored a balance-sheet-strengthening strategy while setting a cautious 2026 outlook calling for flat to slightly lower sales, modest adjusted operating margins, and disciplined capital spending, alongside a previously declared quarterly dividend of $0.125 per share payable April 1, 2026.

The most recent analyst rating on (KSS) stock is a Hold with a $15.50 price target. To see the full list of analyst forecasts on Kohl’s stock, see the KSS Stock Forecast page.

Kohl’s Elevates Mari Steinmetz to Top People Role

Effective February 27, 2026, Kohl’s Corporation promoted Mari Steinmetz to Senior Executive Vice President, Chief People Officer, and designated her as an executive officer, elevating her role from the Executive Vice President, Chief People Officer position she has held since March 2023. Steinmetz, who joined Kohl’s in 2010 and brings more than two decades of retail and human resources experience, will continue to lead the company’s talent, culture, and HR strategy, signaling a reinforcement of leadership stability and focus on workforce development across recruitment, associate relations, compensation, benefits, and organizational culture.

The most recent analyst rating on (KSS) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Kohl’s stock, see the KSS Stock Forecast page.

Kohl’s Declares Regular Quarterly Cash Dividend to Shareholders

On February 25, 2026, Kohl’s Board of Directors declared a regular quarterly cash dividend of $0.125 per share on its common stock, reinforcing a pattern of returning capital to shareholders. The dividend will be paid on April 1, 2026, to shareholders of record as of the close of business on March 18, 2026, signaling continued confidence in the retailer’s financial position and cash generation capability.

The announcement underscores Kohl’s effort to maintain shareholder-friendly policies as it navigates the competitive retail landscape. For income-focused investors, the scheduled payout offers a predictable cash return that may support the stock’s appeal amid ongoing industry pressures and shifting consumer spending patterns.

The most recent analyst rating on (KSS) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Kohl’s stock, see the KSS Stock Forecast page.

Kohl’s Announces Planned Retirement of Senior Executive Leader

On January 28, 2026, Kohl’s Corporation announced that Fred Hand will retire from his role as Senior Executive Vice President and Director of Stores, effective April 3, 2026, marking a planned leadership change in oversight of the company’s store operations. The company stated that there are no changes to Hand’s compensation or other employment terms in connection with his retirement, and any benefits he receives will be in line with his existing executive compensation agreement, indicating a routine transition without additional financial impact beyond established obligations.

The most recent analyst rating on (KSS) stock is a Buy with a $19.50 price target. To see the full list of analyst forecasts on Kohl’s stock, see the KSS Stock Forecast page.