While there are some positive aspects such as the strong performance of Sephora and improved gross margins, the overall sentiment is dominated by significant challenges, including declines in net sales, store closures, and underperformance in digital sales. The guidance for 2025 further reflects a cautious outlook with expected decreases in sales, indicating ongoing challenges in turning around performance.
Company Guidance
During the fourth quarter earnings call, Kohl's Corporation outlined its guidance for 2025, emphasizing a strategic turnaround that will take time to implement. The company expects net sales to decline by 5% to 7% and comparable sales to decrease by 4% to 6%. Operating margins are projected to be between 2.2% and 2.6%, with earnings per share ranging from $0.10 to $0.60. Key focus areas include enhancing the product assortment, re-establishing value and quality, and improving the omnichannel experience. The company plans to optimize its promotional strategy, aiming for a gross margin expansion of 30 to 50 basis points. SG&A expenses are expected to decrease by 3.5% to 5%, with further cost rationalization efforts underway. Capital expenditures are projected to be between $400 million and $405 million, with a focus on completing the Sephora rollout and expanding omnichannel capabilities. Kohl's also announced a reduction in its quarterly dividend to $0.125 per share to prioritize cash balance rebuilding and debt reduction.
Sephora as a Strong Sales Driver
Sephora continued to be a strong sales driver with beauty sales increasing 13% in Q4, showing an acceleration from the third quarter. This segment has successfully attracted new customers and maintained strong performance.
Improved Gross Margin
Gross margin in Q4 increased by 49 basis points to 32.9%, attributed to optimizing promotional events and a lower digital penetration. For the full fiscal year 2024, gross margin increased by 50 basis points to 37.2%.
Commitment to Operational Excellence
Kohl's is committed to reducing costs and investing in future growth, with actions taken in Q4 resulting in lower spending in stores, marketing, and supply chain, showing a decrease in SG&A expenses by 4.5%.
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Kohl's (KSS) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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KSS Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Mar 11, 2025
$11.87
$9.02
-24.01%
Nov 26, 2024
$17.48
$14.50
-17.05%
Aug 28, 2024
$18.21
$18.26
+0.27%
May 30, 2024
$24.76
$19.10
-22.86%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Kohl's (KSS) report earnings?
Kohl's (KSS) is schdueled to report earning on May 21, 2025, TBA Not Confirmed.
What is Kohl's (KSS) earnings time?
Kohl's (KSS) earnings time is at May 21, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.