Kohl's (KSS) AI Stock Analysis

• Market Cap: $832.70M
• Dividend Yield: 21.72%
• Average Volume (3M): 9.73M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.37
• Revenue Growth: -7.18%
• EPS Growth: -65.92%
• Country: US
• Employees: 87,000
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Department Stores
• EPS (TTM): 0.95
• Shares Outstanding: 111,323,550
• 10 Day Avg. Volume: 9,499,875
• 30 Day Avg. Volume: 9,729,700
• PEG Ratio: -0.15
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.79
• Price Target Upside: -14.16% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 12

• Rating: 58 Neutral
• Price Target: ―

Kohl's overall stock score reflects a challenging financial environment with declining sales and profitability. The technical analysis indicates bearish trends, while the valuation suggests potential undervaluation. The cautious earnings outlook and recent CEO termination highlight both risks and opportunities for strategic improvement.

Positive Factors

Earnings

KSS delivered a solid 4Q EPS beat, with upside across sales, GM, and SG&A, driven by comp improvement across almost all lines of business and optimized promotional events.

Preliminary Guidance

The company announced preliminary 1Q guidance of comps in the range of (4.3%) to (4.0) and diluted EPS of ($0.24) to ($0.20), which is above the comp forecast and guidance of (6%).

Stock Volatility

Short interest remains very high, which could potentially lead to a positive turn going into earnings.

Negative Factors

Customer Engagement

Web traffic to kohls.com has decelerated, suggesting a decrease in online consumer engagement.

Guidance and Expectations

Management's earnings per share guidance for F25 is significantly lower than consensus estimates.

Leadership Changes

KSS announced a CEO termination after finding undisclosed conflicts of interest with certain vendor contracts.

Kohl's Business Overview & Revenue Model

Company Description

Kohl's Corporation (KSS) is a leading American department store chain that operates retail stores across the United States. Founded in 1962 and headquartered in Menomonee Falls, Wisconsin, the company offers a wide range of products, including apparel, footwear, accessories, home products, and beauty items. Kohl's targets middle-income families by providing quality merchandise at competitive prices, focusing on both national brands and private label products. The company is committed to delivering a convenient shopping experience through its brick-and-mortar locations as well as its e-commerce platform.

How the Company Makes Money

Kohl's generates revenue primarily through the sale of merchandise in its physical stores and online platform. The company's revenue model is based on retail sales from a diverse product mix, including clothing, shoes, accessories, home goods, and beauty products. Kohl's leverages a combination of national and private label brands to attract a broad customer base. Key revenue streams include in-store sales, online sales via its e-commerce platform, and credit card revenue from its private-label credit card program. Additionally, Kohl's has established partnerships with prominent brands and designers, enhancing its product offerings and driving customer traffic. The company also focuses on promotions, loyalty programs, and strategic marketing to boost sales and maintain customer loyalty. Seasonal sales, holiday promotions, and clearance events play a significant role in driving short-term revenue spikes.

Kohl's Financial Statement Overview

Summary

Kohl's faces challenges with declining revenues, low margins, and high leverage. Despite stable cash flows and some profitability, strategic improvements are needed for revenue growth and cost management.

Income Statement

Kohl's income statement reveals challenges with declining revenues over the years, with a notable drop from $19.97 billion in 2020 to $16.22 billion in 2025. The gross profit margin is low at approximately 0.23% in 2025, indicating pressure on sales and cost management. Although there was a positive net income in 2025, the net profit margin remains modest at 0.67%. The EBIT margin is 2.67%, and the EBITDA margin is 7.25%, showing some profitability but lower than industry norms. Revenue growth was negative year-over-year, highlighting the need for strategic improvements to reverse this trend.

Balance Sheet

The balance sheet shows a mixed picture with a high debt-to-equity ratio of 0.76, suggesting significant leverage. However, the equity ratio of 28.05% in 2025 indicates a reasonable level of equity financing. Return on equity improved slightly to 2.87% in 2025, but this is still low, reflecting moderate profitability on shareholder investments. Liquidity seems manageable, but the high debt levels pose a risk if cash flows do not improve.

Cash Flow

The cash flow statement reflects a stable operating cash flow with $648 million in 2025, but free cash flow growth is inconsistent due to fluctuations in capital expenditures. The operating cash flow to net income ratio is strong at 5.95, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 5.95, also highlighting strong cash flow generation. However, the negative free cash flow growth in prior years underscores the need for careful capital spending management.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
16.22B	17.48B	18.10B	19.43B	15.96B
	Gross Profit
37.20M	6.23B	6.64B	8.00B	5.59B
	EBIT
433.00M	717.00M	246.00M	1.68B	-300.00M
	EBITDA
1.18B	1.47B	1.05B	2.32B	612.00M
	Net Income Common Stockholders
109.00M	317.00M	-19.00M	938.00M	-163.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
134.00M	183.00M	153.00M	1.59B	2.27B
	Total Assets
13.56B	14.01B	14.35B	15.05B	15.34B
	Total Debt
2.89B	7.38B	7.57B	6.79B	6.74B
	Net Debt
2.76B	7.19B	7.41B	5.20B	4.47B
	Total Liabilities
9.76B	10.12B	10.58B	10.39B	10.14B
	Stockholders Equity
3.80B	3.89B	3.76B	4.66B	5.20B
Cash Flow		Free Cash Flow
648.00M	591.00M	-544.00M	1.67B	1.00B
	Operating Cash Flow
648.00M	1.17B	282.00M	2.27B	1.34B
	Investing Cash Flow
-467.00M	-562.00M	-783.00M	-570.00M	-137.00M
	Financing Cash Flow
-230.00M	-576.00M	-933.00M	-2.38B	347.00M

Kohl's Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.91
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KSS, the sentiment is Neutral. The current price of 7.91 is above the 20-day moving average (MA) of 7.54, above the 50-day MA of 7.55, and below the 200-day MA of 13.55, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 27.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KSS.

Kohl's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDS	78 Outperform	$6.57B	11.57	30.93%	0.24%	-3.94%	-17.83%
M	70 Neutral	$3.35B	5.83	13.40%	6.08%	-3.60%	442.87%
Sector *	62 Neutral	$6.84B	11.23	3.09%	3.95%	2.66%	-25.23%
WGO	61 Neutral	$962.39M	―	-0.45%	3.96%	-12.29%	-105.55%
KSS	58 Neutral	$832.70M	7.69	2.83%	21.72%	-7.18%	-65.92%
FL	56 Neutral	$2.28B	194.63	0.62%	―	-2.20%	―

Kohl's Corporate Events

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.

Kohl’s Appoints New Board Chair Amid Leadership Changes

Christine Day has decided to resign from Kohl’s Corporation’s Board of Directors effective May 5, 2025, without any disagreements with the company’s operations or policies. Consequently, her nomination for reelection at the upcoming annual shareholders’ meeting has been withdrawn, and the Board has reduced its size from 11 to 10 members. Following Michael J. Bender’s appointment as Interim CEO, John E. Schlifske has been appointed as the independent Chair of the Board as of May 7, 2025. Additionally, a CEO search committee has been established to find a new CEO.

Kohl’s CEO Terminated Amid Conflict Investigation

On April 30, 2025, Kohl’s Board of Directors terminated CEO J. Ashley Buchanan for cause, following an investigation that revealed undisclosed conflicts of interest in vendor transactions. Michael J. Bender has been appointed as Interim CEO, and the Board will search for a permanent replacement. Buchanan’s termination is unrelated to the company’s performance or financial reporting. Kohl’s also provided preliminary expectations for its first quarter 2025 financial results, anticipating a decline in comparable sales and operating income.

Kohl’s Declares Quarterly Dividend Amid Sales Decline

On March 11, 2025, Kohl’s Board of Directors declared a quarterly cash dividend of $0.125 per share, payable on April 2, 2025, to shareholders of record as of March 21, 2025. Kohl’s reported a decrease in net sales and comparable sales for both the fourth quarter and fiscal year 2024, with net sales down 9.4% and 7.2%, respectively. Despite these declines, the company increased its gross margin and reduced SG&A expenses. Kohl’s CEO, Ashley Buchanan, emphasized the company’s strategic focus on leveraging its strengths and addressing key opportunities to better serve customers in 2025.