Kohl's (KSS) AI Stock Analysis

• Market Cap: $2.60B
• Dividend Yield: 2.16%
• Average Volume (3M): 5.78M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 2.11
• 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: 4,013,800
• 30 Day Avg. Volume: 5,776,734
• 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: 3.28
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 1.46
• Enterprise Value/Ebitda: 6.84
• 1Y Price Target: $19.75
• Price Target Upside: -9.57% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 13
• EPS Forecast (FY): 1.38
• Revenue Forecast (FY): $14.83B

• Rating: 68 Neutral
• Price Target: $24.50 ▲(12.18% Upside)

Kohl's overall stock score of 68 reflects a balance of strengths and challenges. The most significant factor is the strong cash flow performance, indicating robust cash generation. Technical analysis supports a bullish trend, while valuation remains fair with an attractive dividend yield. The earnings call highlights strategic improvements but also acknowledges ongoing challenges in sales and discretionary spending.

Positive Factors

Leadership Change

The appointment of Michael Bender as CEO brings over 30 years of retail leadership experience, potentially driving strategic transformation and operational improvements, which can enhance long-term competitiveness and market positioning.

Cash Flow Strength

Strong cash flow performance indicates robust cash generation, providing financial flexibility for strategic investments, debt reduction, and shareholder returns, supporting long-term business sustainability.

Proprietary Brands Success

Growth in proprietary brands highlights successful differentiation and customer loyalty, which can drive sustained revenue and margin improvements, enhancing Kohl's competitive edge in the retail sector.

Negative Factors

Declining Revenue

Continued decline in net sales reflects challenges in maintaining customer demand and market share, potentially impacting long-term revenue growth and profitability if not addressed.

Pressure on Discretionary Income

Economic pressures on key customer segments can limit spending on non-essential items, affecting sales in discretionary categories and posing risks to revenue stability.

Declining Comparable Sales

A decline in comparable sales indicates challenges in driving store traffic and sales efficiency, which can hinder overall growth and competitive positioning in the retail market.

Kohl's Business Overview & Revenue Model

Company Description

Kohl's Corporation is a leading American department store retail chain, headquartered in Menomonee Falls, Wisconsin. It operates over 1,100 stores across the United States, offering a wide range of products including apparel, footwear, accessories, home goods, and beauty products. Kohl's targets a diverse customer base, providing both national and exclusive brand merchandise, and emphasizing value through promotions and loyalty programs. The company also features an e-commerce platform, enhancing its reach and customer engagement.

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

Kohl's financial performance is mixed. The income statement shows declining revenue and low net profit margins, but there are improvements in EBIT and EBITDA margins. The balance sheet indicates better leverage management with a significant reduction in the debt-to-equity ratio. Cash flow is strong, with a robust free cash flow growth rate and efficient cash conversion from profits.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 21.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 21.84 is below the 20-day moving average (MA) of 22.76, above the 50-day MA of 18.85, and above the 200-day MA of 12.57, indicating a neutral trend. The MACD of 1.13 indicates Positive momentum. The RSI at 52.73 is Neutral, neither overbought nor oversold. The STOCH value of 32.57 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	76 Outperform	$10.36B	18.01	28.98%	4.08%	-1.07%	-5.22%
M	74 Outperform	$6.34B	14.01	11.28%	3.18%	-2.83%	184.32%
VSCO	71 Outperform	$4.55B	27.11	31.50%	―	2.97%	9.85%
KSS	68 Neutral	$2.60B	13.61	5.02%	2.16%	-6.13%	-22.57%
SHOO	66 Neutral	$3.13B	54.67	6.68%	1.95%	6.26%	-66.51%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HBI	49 Neutral	―	―	140.06%	―	-19.47%	―

Kohl's Corporate Events

Kohl’s Appoints Michael J. Bender as CEO

On November 25, 2025, Kohl’s reported its financial results for the third quarter of fiscal 2025, showing a decline in net sales by 2.8% and comparable sales by 1.7% compared to the previous year. Despite these declines, the company increased its gross margin by 51 basis points and reduced SG&A expenses by 2.1%. Additionally, Kohl’s appointed Michael J. Bender as its CEO, who has been serving as interim CEO since May 2025. The company also raised its full-year 2025 financial outlook, reflecting confidence in its strategic initiatives and operational discipline.

Kohl’s Appoints Michael J. Bender as CEO

On November 23, 2025, Kohl’s Corporation appointed Michael J. Bender as the Chief Executive Officer, following his interim CEO role since May 2025. Bender, who has extensive leadership experience in retail and consumer goods, is expected to drive the company’s strategic and cultural transformation, benefiting associates, customers, and shareholders. His appointment comes after a comprehensive search by the Board, highlighting his proven leadership during his interim tenure. Bender’s leadership is anticipated to reestablish Kohl’s position in the retail industry, with a focus on customer-centric strategies.

Kohl’s Announces Quarterly Cash Dividend

On November 12, 2025, Kohl’s Corporation announced a quarterly cash dividend of $0.125 per share, payable on December 24, 2025, to shareholders recorded by December 10, 2025. This decision reflects Kohl’s ongoing commitment to returning value to its shareholders and may influence investor confidence positively.