Kohl's (KSS) AI Stock Analysis

• Market Cap: $1.54B
• Dividend Yield: 9.16%
• Average Volume (3M): 16.32M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.60
• Revenue Growth: -7.03%
• EPS Growth: -56.59%
• Country: US
• Employees: 87,000
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Department Stores
• EPS (TTM): -0.13
• Shares Outstanding: 112,041,680
• 10 Day Avg. Volume: 6,826,160
• 30 Day Avg. Volume: 16,316,665
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 5.22
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 1.82
• Enterprise Value/Ebitda: 6.82
• 1Y Price Target: $7.75
• Price Target Upside: -43.18% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 13

• Rating: 67 Neutral
• Price Target: $13.00 ▼(-4.69% Downside)

Kohl's overall stock score reflects a mix of challenges and opportunities. Financial performance is weak due to declining sales and high leverage, but technical indicators suggest potential for price recovery. Valuation metrics indicate possible undervaluation, and strategic initiatives from the earnings call provide some optimism. However, macroeconomic pressures and digital underperformance remain significant risks.

Positive Factors

Company Guidance

Management unexpectedly reiterated guidance, indicating plans to mitigate the vast majority of the tariff impact.

Earnings

Better than expected comps of -4.3% to -4% drove upside to EPS in prelim results.

Tariff Mitigation

Tariff mitigation strategies are providing flexibility as Kohl’s has diversified its country exposure within the supply chain.

Negative Factors

Leadership Transition

Another management change in the midst of a volatile macro backdrop and already challenging sales rebuild will be a distraction.

Sales Performance

Foot traffic data shows a decline in the first quarter compared to the previous quarter, indicating challenges in attracting customers.

Turnaround Challenges

The recent CEO change is likely to elongate the company's already difficult turnaround.

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 generates revenue primarily through the sale of merchandise in its department stores and online. The company's revenue model is centered around three main streams: product sales, private label brands, and loyalty programs. Product sales encompass a vast array of categories, including clothing, home goods, and beauty products, with a focus on offering value and discounts to attract price-sensitive consumers. Kohl's also benefits from its private label brands, which typically yield higher margins compared to national brands. Additionally, the company has developed loyalty programs, such as Kohl's Cash, which incentivizes repeat purchases and enhances customer loyalty. Partnerships with brands and seasonal promotions further contribute to sales, while the integration of online and in-store shopping experiences helps to drive traffic and conversion rates across both channels.

Kohl's Financial Statement Overview

Summary

Kohl's faces declining revenue and profitability, high leverage, and negative growth in free cash flow. The company has moderate operational efficiency but struggles to convert revenue into profit. High debt levels pose financial risks, while cash flow stability provides some reassurance.

Income Statement

Kohl's has experienced a decline in both total revenue and profitability in recent years. The TTM (Trailing-Twelve-Months) gross profit margin stands at 27.5%, showing moderate efficiency in controlling production costs. However, net profit margin is low at 0.75%, indicating challenges in translating revenue into profit. Revenue has decreased significantly over the years, with a noticeable drop from $19.43 billion in 2022 to $16.07 billion in TTM 2025, indicating a negative growth trend. The EBIT and EBITDA margins for TTM are 2.8% and 7.3%, respectively, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.95, which suggests significant leverage and potential financial risk. The return on equity (ROE) for the TTM period is 3.2%, indicating low efficiency in generating profit from shareholders' equity. The equity ratio stands at 27.7%, reflecting moderate reliance on equity financing. Overall, the balance sheet highlights potential risks due to high leverage.

Cash Flow

Kohl's cash flow shows signs of stability, with an operating cash flow to net income ratio of 4.65, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 0.93, showing improved efficiency in converting income to cash flow. However, free cash flow has declined from $1.67 billion in 2022 to $113 million in TTM 2025, reflecting a negative growth trajectory. Despite this, cash flow management appears relatively stable.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.07B	16.22B	17.48B	18.10B	19.43B	15.96B
Gross Profit	4.42B	37.20M	6.23B	6.64B	8.00B	5.59B
EBITDA	1.18B	1.18B	1.47B	1.05B	2.32B	612.00M
Net Income	121.00M	109.00M	317.00M	-19.00M	938.00M	-163.00M
Balance Sheet
Total Assets	13.64B	13.56B	14.01B	14.35B	15.05B	15.34B
Cash, Cash Equivalents and Short-Term Investments	153.00M	134.00M	183.00M	153.00M	1.59B	2.27B
Total Debt	7.37B	7.16B	7.38B	7.57B	6.79B	6.74B
Total Liabilities	9.86B	9.76B	10.12B	10.58B	10.39B	10.14B
Stockholders Equity	3.78B	3.80B	3.89B	3.76B	4.66B	5.20B
Cash Flow
Free Cash Flow	113.00M	182.00M	591.00M	-544.00M	1.67B	1.00B
Operating Cash Flow	563.00M	648.00M	1.17B	282.00M	2.27B	1.34B
Investing Cash Flow	-449.00M	-467.00M	-562.00M	-783.00M	-570.00M	-137.00M
Financing Cash Flow	-189.00M	-230.00M	-576.00M	-933.00M	-2.38B	347.00M

Kohl's Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KSS, the sentiment is Positive. The current price of 13.64 is above the 20-day moving average (MA) of 12.42, above the 50-day MA of 10.34, and above the 200-day MA of 11.02, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 62.49 is Neutral, neither overbought nor oversold. The STOCH value of 84.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KSS.

Kohl's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDS	77 Outperform	$8.05B	14.22	29.76%	5.04%	-2.44%	-10.73%
M	77 Outperform	$3.48B	6.48	12.92%	5.37%	-3.77%	4607.98%
Sector *	67 Neutral	¥279.70B	15.09	6.81%	2.49%	5.05%	-21.29%
KSS	67 Neutral	$1.54B	12.76	3.19%	9.16%	-7.03%	-56.59%
JWN	60 Neutral	$4.12B	14.17	29.58%	3.08%	2.20%	120.00%
WGO	54 Neutral	$961.45M	―	-1.35%	3.97%	-9.32%	-120.00%
FL	50 Neutral	$2.46B	194.63	-12.85%	―	-2.62%	0.93%

Kohl's Corporate Events

Kohl’s Declares Quarterly Cash Dividend Announcement

On August 12, 2025, Kohl’s Corporation announced a quarterly cash dividend of $0.125 per share, payable on September 24, 2025, to shareholders recorded by September 10, 2025. This declaration reflects Kohl’s ongoing commitment to providing shareholder value and could influence investor confidence in the company’s financial health.

The most recent analyst rating on (KSS) stock is a Hold 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 Completes $360M Senior Secured Notes Offering

On May 30, 2025, Kohl’s Corporation completed a private offering of $360 million in senior secured notes due 2030, bearing an interest rate of 10%. The proceeds were used to repay borrowings under the company’s revolving credit facility, with plans to use the facility to repay notes due in 2025. The notes are secured by equity interests and distribution centers, with guarantees from subsidiaries, and governed by an indenture that includes covenants limiting additional indebtedness and asset dispositions.

The most recent analyst rating on (KSS) stock is a Hold 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 Reports Q1 2025 Financial Results

On May 29, 2025, Kohl’s Corporation reported its first-quarter fiscal 2025 financial results, highlighting a 4.1% decrease in net sales and a 3.9% drop in comparable sales compared to the previous year. Despite these declines, the company saw a 37 basis point increase in gross margin and reduced its SG&A expenses by 5.2%. Operating income rose to $60 million, and the net loss was reduced to $15 million from $27 million the prior year. Interim CEO Michael Bender expressed optimism about the company’s progress and future potential, affirming the full-year 2025 financial outlook.

The most recent analyst rating on (KSS) stock is a Hold 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 $360M Senior Secured Notes Offering

On May 15, 2025, Kohl’s Corporation announced the pricing of a $360 million private offering of 10.000% senior secured notes due 2030, guaranteed by its subsidiaries and secured by 11 distribution centers and e-commerce facilities. The proceeds will be used to repay borrowings under its revolving credit facility, with plans to repay its 4.25% notes due 2025 at maturity, potentially impacting its financial structure and stakeholder interests.

The most recent analyst rating on (KSS) stock is a Hold 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 Shareholders Meeting and Dividend Announcement

On May 14, 2025, Kohl’s Corporation held its Annual Meeting of Shareholders where several key proposals were voted on. The shareholders elected eight directors for a one-year term, approved the executive compensation for fiscal 2024, and ratified Ernst & Young LLP as the independent accounting firm for the fiscal year ending January 31, 2026. However, a proposal for a shareholder vote on executive severance payments was not approved. Additionally, the Board declared a quarterly cash dividend of $0.125 per share, payable on June 25, 2025, to shareholders of record as of June 11, 2025.

The most recent analyst rating on (KSS) stock is a Hold 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 $360 Million Senior Secured Notes Offering

On May 9, 2025, Kohl’s Corporation amended its Revolving Credit Facility with Wells Fargo Bank to facilitate the issuance of senior secured notes. On May 13, 2025, Kohl’s announced a private offering of approximately $360 million in senior secured notes due 2030, secured by 11 distribution centers and e-commerce facilities. The proceeds will be used to repay borrowings under the Revolving Credit Facility, including the 4.25% notes due in 2025.

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