Kohl's (KSS) AI Stock Analysis

• Market Cap: $1.74B
• Dividend Yield: 2.33%
• Average Volume (3M): 3.27M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 2.08
• Revenue Growth: -6.13%
• EPS Growth: -22.57%
• Country: US
• Employees: 87,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 0.10
• Shares Outstanding: 112,189,190
• 10 Day Avg. Volume: 3,032,936
• 30 Day Avg. Volume: 3,267,999
• PEG Ratio: -0.20
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 8.06
• Enterprise Value/Market Cap: 4.83
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 1.44
• Enterprise Value/Ebitda: 6.72
• 1Y Price Target: $18.25
• Price Target Upside: 17.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.37
• Revenue Forecast (FY): $14.73B

• Rating: 58 Neutral
• Price Target: $16.00 ▲(3.36% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by mixed financial performance—strong free cash flow and improved leverage offset by declining revenue and thin margins. Technicals are a meaningful detractor given a negative MACD and trading below key moving averages. Valuation (low P/E and a ~2.8% yield) provides support, while the latest earnings call was cautiously optimistic but still guided to continued sales declines despite planned margin and cost improvements.

Positive Factors

Improved Leverage / Balance Sheet Health

Material reduction in leverage meaningfully improves financial flexibility and lowers interest burden, enabling the company to fund operations, return capital, or invest in strategic initiatives during 2–6 months of continued softness without needing emergency financing.

Strong Cash Generation

Robust free cash flow and high cash conversion create durable liquidity to support dividends, share repurchase, debt reduction, and working capital. That cash resilience cushions the business while revenue remodels and funds long-term strategic programs.

Strategic Partnership & Proprietary Brand Strength

Expanding Sephora shop-in-shop and positive proprietary-brand comps strengthen differentiation and traffic drivers, structurally boosting omni-channel assortment and customer engagement over multiple quarters and supporting higher-margin beauty and private-label sales.

Negative Factors

Declining Revenue and Thin Margins

Sustained revenue declines and a sharp gross margin contraction indicate structural pricing or cost pressure and weaker product mix. Thin net margins limit reinvestment capacity and leave less room to absorb continued market or input-cost shocks over the next several quarters.

Guided Continued Sales Declines

Management expects further sales contraction, signaling that near-term operational fixes may not offset secular demand pressures. Continued top-line weakness constrains margin recovery, inventory turns, and the timeline to restore historical growth trajectories.

Underperforming Categories and Credit Revenue Pressure

Weakness in discretionary categories and falling credit-related revenue reduce basket sizes and ancillary income that historically boost profitability. These persistent category and loyalty-revenue headwinds can depress margins and slow structural recovery over multiple quarters.

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 stores and online. The company's revenue model is centered around retail sales, with significant income derived from various product categories such as women's, men's, and children's apparel, as well as home goods and beauty products. Key revenue streams include regular sales, promotional sales, and seasonal sales events. Additionally, Kohl's benefits from its loyalty program, which encourages repeat purchases and increases customer retention. The company has also established partnerships with well-known brands, including exclusive collaborations that drive traffic and sales. Furthermore, Kohl's has leveraged its e-commerce capabilities to grow online sales, which have become increasingly important, especially in the face of changing consumer shopping behaviors.

Kohl's Financial Statement Overview

Summary

Mixed fundamentals: revenue is declining (TTM revenue growth -0.85%) and profitability is thin (TTM net margin 1.23%) with a sharp drop in gross margin versus the prior annual period. Offsetting positives include materially improved leverage (TTM debt-to-equity 0.17 vs 1.88) and strong cash generation (TTM free cash flow growth 60.44%, high free cash flow-to-net income at 0.92).

Income Statement

Kohl's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is 19.09%, which is a significant decline from the previous annual report's 40.44%. The net profit margin is low at 1.23%, indicating challenges in converting revenue into profit. Revenue has been declining, with a TTM revenue growth rate of -0.85%. However, the EBIT and EBITDA margins have shown slight improvements, suggesting some operational efficiency gains.

Balance Sheet

The balance sheet reflects a stable financial position with a TTM debt-to-equity ratio of 0.17, which is a significant improvement from the previous year's 1.88. This indicates better leverage management. However, the return on equity is modest at 3.03%, suggesting limited profitability relative to shareholder equity. The equity ratio is not explicitly calculated, but the total assets and stockholders' equity indicate a stable asset base.

Cash Flow

Kohl's cash flow statement shows strong performance with a TTM free cash flow growth rate of 60.44%, indicating robust cash generation. The operating cash flow to net income ratio is 0.37, suggesting good cash flow relative to net income. The free cash flow to net income ratio is high at 0.92, highlighting efficient cash conversion from profits.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	15.75B	16.22B	17.48B	18.10B	19.43B	15.96B
Gross Profit	5.84B	5.82B	6.23B	5.83B	7.16B	4.91B
EBITDA	1.25B	1.18B	1.47B	1.05B	2.32B	612.00M
Net Income	194.00M	109.00M	317.00M	-19.00M	938.00M	-163.00M
Balance Sheet
Total Assets	14.14B	13.56B	14.01B	14.35B	15.05B	15.34B
Cash, Cash Equivalents and Short-Term Investments	144.00M	134.00M	183.00M	153.00M	1.59B	2.27B
Total Debt	6.80B	7.16B	7.38B	7.57B	6.79B	6.74B
Total Liabilities	10.21B	9.76B	10.12B	10.58B	10.39B	10.14B
Stockholders Equity	3.93B	3.80B	3.89B	3.76B	4.66B	5.20B
Cash Flow
Free Cash Flow	1.02B	182.00M	591.00M	-544.00M	1.67B	1.00B
Operating Cash Flow	1.23B	648.00M	1.17B	282.00M	2.27B	1.34B
Investing Cash Flow	-373.00M	-467.00M	-562.00M	-783.00M	-570.00M	-137.00M
Financing Cash Flow	-883.00M	-230.00M	-576.00M	-933.00M	-2.38B	347.00M

Kohl's Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 15.48 is below the 20-day moving average (MA) of 18.10, below the 50-day MA of 19.24, and above the 200-day MA of 15.23, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 31.11 is Neutral, neither overbought nor oversold. The STOCH value of 6.25 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
VSCO	72 Outperform	$4.91B	30.00	31.50%	―	2.97%	9.85%
M	67 Neutral	$5.00B	11.63	11.28%	3.23%	-2.83%	184.32%
DDS	65 Neutral	$9.48B	16.60	31.92%	3.99%	-1.07%	-5.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KSS	58 Neutral	$1.74B	9.60	5.02%	2.33%	-6.13%	-22.57%
SHOO	56 Neutral	$2.59B	57.30	5.21%	1.97%	6.26%	-66.51%

Kohl's Corporate Events

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.