Kohl's (KSS) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: 2.33%
• Average Volume (3M): 3.44M
• Price to Earnings (P/E): 56.9
• 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: 3,561,353
• 30 Day Avg. Volume: 3,444,138
• 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: 4.85
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 1.43
• Enterprise Value/Ebitda: 6.71
• 1Y Price Target: $18.25
• Price Target Upside: 19.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.37
• Revenue Forecast (FY): $14.73B

• Rating: 60 Neutral
• Price Target: $16.00 ▲(4.64% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

Overall score reflects strong cash-flow generation and improved leverage plus supportive valuation (low P/E and ~3.25% yield), offset by weak technicals (below key moving averages with negative MACD) and an earnings outlook that still calls for declining sales despite margin/expense improvement efforts.

Positive Factors

Cash generation

Kohl’s strong free cash flow growth and FCF-to-net income near 1.0 indicate durable cash conversion. That persistent cash generation supports dividends, share actions, inventory optimization and debt reduction, providing financial flexibility through retail cycles and funding strategic investments.

Balance sheet / leverage

A materially lower debt-to-equity ratio signals sustained deleveraging and greater financial resilience. Reduced leverage improves covenant headroom and lowers interest exposure, enabling management to prioritize reinvestment in omnichannel capabilities and return capital without compromising liquidity.

Omnichannel & partnerships

Steady digital growth, positive comps in proprietary brands, and expansion of the Sephora partnership (MAC rollout) reflect structural improvements in assortment and customer acquisition. These durable initiatives deepen traffic, higher-margin mix, and cross-channel fulfillment advantages versus offline-only peers.

Negative Factors

Declining sales / comps

Management’s forward guidance for continuing sales and comp declines points to persistent demand challenges. Ongoing top-line contraction reduces operating leverage, constrains reinvestment capacity, and makes margin recovery and growth initiatives harder to sustain over the next several quarters.

Low profitability / margin pressure

Very low net margin and a sharp reported drop in gross margin signal structural pressure on pricing, assortment profitability or cost absorption. Persistently compressed margins limit earnings resilience, reduce ROE, and leave less buffer for promotional cycles or cost inflation without eroding cash flow.

Weak ancillary revenue & category gaps

A decline in credit-related revenue removes a higher-margin revenue stream and can weaken loyalty economics. Simultaneous softness in footwear and kids narrows category breadth and reduces basket depth, making Kohl’s more vulnerable to shifts in discretionary spend and limiting recovery drivers.

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: profitability and revenue trends are pressured (TTM net margin 1.23%, TTM revenue growth -0.85%, and a sharp drop in gross margin versus the prior annual figure), but leverage improved materially (debt-to-equity 0.17 vs 1.88) and cash generation is strong (TTM free cash flow growth 60.44% and high FCF-to-net income of 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: 15.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 15.29 is below the 20-day moving average (MA) of 17.83, below the 50-day MA of 18.95, and below the 200-day MA of 15.30, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 30.27 is Neutral, neither overbought nor oversold. The STOCH value of 8.29 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	$4.99B	30.46	31.50%	―	2.97%	9.85%
M	67 Neutral	$4.86B	118.58	11.28%	3.23%	-2.83%	184.32%
DDS	65 Neutral	$9.85B	16.61	31.92%	3.99%	-1.07%	-5.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KSS	60 Neutral	$1.73B	56.95	5.02%	2.33%	-6.13%	-22.57%
SHOO	56 Neutral	$2.61B	66.08	5.21%	1.97%	6.26%	-66.51%

Kohl's Corporate Events

Kohl’s Elevates Mari Steinmetz to Top People Role

Effective February 27, 2026, Kohl’s Corporation promoted Mari Steinmetz to Senior Executive Vice President, Chief People Officer, and designated her as an executive officer, elevating her role from the Executive Vice President, Chief People Officer position she has held since March 2023. Steinmetz, who joined Kohl’s in 2010 and brings more than two decades of retail and human resources experience, will continue to lead the company’s talent, culture, and HR strategy, signaling a reinforcement of leadership stability and focus on workforce development across recruitment, associate relations, compensation, benefits, and organizational culture.

The most recent analyst rating on (KSS) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Kohl’s stock, see the KSS Stock Forecast page.

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.