Kohl's (KSS) AI Stock Analysis

• Market Cap: $1.86B
• Dividend Yield: 7.53%
• Average Volume (3M): 9.03M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.60
• Revenue Growth: -7.23%
• EPS Growth: -27.81%
• Country: US
• Employees: 87,000
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Department Stores
• EPS (TTM): 0.56
• Shares Outstanding: 112,074,684
• 10 Day Avg. Volume: 12,216,152
• 30 Day Avg. Volume: 9,028,769
• 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: 4.26
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 1.74
• Enterprise Value/Ebitda: 6.18
• 1Y Price Target: $12.54
• Price Target Upside: -24.32% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 11

• Rating: 77 Outperform
• Price Target: $17.50 ▲(5.61% Upside)

Kohl's overall stock score reflects a combination of strong technical momentum and attractive valuation, offset by financial performance challenges and mixed earnings call sentiment. The company's strategic initiatives and corporate events provide a positive outlook, but macroeconomic pressures and sales declines remain significant risks.

Positive Factors

Earnings

Management raised the FY25 EPS outlook based on an improved financial performance compared to previous guidance.

Strategic Initiatives

Management is encouraged by early reads on initiatives such as private brands, impulse lines, and bringing back petites/jewelry.

Negative Factors

Market Share

The core Apparel, Footwear, and Legacy Home categories are experiencing revenue declines, suggesting market share erosion.

Profitability Risks

The retail business relies on credit card-related income to achieve profitability, and with expected credit card revenue declines in FY25, profitability risks remain.

Same-Store Sales

Same-store sales continue to decline, indicating ongoing challenges in maintaining customer traffic and sales growth.

Kohl's Business Overview & Revenue Model

Company Description

Kohl's Corporation is a leading American department store retail chain, primarily operating in the United States. Established in 1962, Kohl's offers a wide range of products, including apparel, footwear, accessories, beauty products, and home goods. The company caters to a diverse customer base, providing quality merchandise at competitive prices through its extensive network of physical stores and a robust e-commerce platform. Kohl's is known for its commitment to customer service, community involvement, and various loyalty programs, which enhance customer engagement and retention.

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 financial performance is mixed. While revenue and gross profit margins have declined, the company has improved its leverage position and demonstrated strong cash flow growth. The modest return on equity and positive net profit margin indicate some profitability, but the company faces challenges in revenue growth and margin pressures.

Income Statement

Kohl's has shown a decline in revenue over the past few years, with a negative revenue growth rate of -1.16% in the TTM period. The gross profit margin has decreased significantly from 41.15% in 2022 to 10.36% in the TTM period, indicating pressure on profitability. However, the company has managed to maintain a positive net profit margin of 1.31% in the TTM period, showing some resilience in net income generation.

Balance Sheet

The debt-to-equity ratio has improved significantly to 0.19 in the TTM period from 1.88 in 2025, indicating a reduction in leverage. The return on equity is modest at 2.31% in the TTM period, reflecting moderate profitability. The equity ratio stands at 100%, suggesting a strong equity base relative to total assets.

Cash Flow

Kohl's has demonstrated strong free cash flow growth of 501.77% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.36, showing a healthy conversion of net income to cash. The free cash flow to net income ratio of 0.75 suggests efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.89B	16.22B	17.48B	18.10B	19.43B	15.96B
Gross Profit	4.54B	6.56B	6.23B	6.64B	8.00B	5.59B
EBITDA	1.28B	1.18B	1.47B	1.05B	2.32B	612.00M
Net Income	208.00M	109.00M	317.00M	-19.00M	938.00M	-163.00M
Balance Sheet
Total Assets	13.39B	13.56B	14.01B	14.35B	15.05B	15.34B
Cash, Cash Equivalents and Short-Term Investments	174.00M	134.00M	183.00M	153.00M	1.59B	2.27B
Total Debt	6.86B	7.16B	7.38B	7.57B	6.79B	6.74B
Total Liabilities	9.46B	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	680.00M	182.00M	591.00M	-544.00M	1.67B	1.00B
Operating Cash Flow	907.00M	648.00M	1.17B	282.00M	2.27B	1.34B
Investing Cash Flow	-409.00M	-467.00M	-562.00M	-783.00M	-570.00M	-137.00M
Financing Cash Flow	-555.00M	-230.00M	-576.00M	-933.00M	-2.38B	347.00M

Kohl's Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.57
• 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 16.57 is above the 20-day moving average (MA) of 14.51, above the 50-day MA of 12.14, and above the 200-day MA of 10.87, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 67.00 is Neutral, neither overbought nor oversold. The STOCH value of 89.82 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
KSS	77 Outperform	$1.86B	9.04	5.36%	7.53%	-7.23%	-27.81%
DDS	77 Outperform	$9.01B	15.91	29.76%	4.49%	-2.44%	-10.74%
M	62 Neutral	$4.71B	9.87	11.31%	4.11%	-3.43%	169.28%
Sector *	61 Neutral	$17.92B	12.81	-2.97%	2.98%	1.30%	-14.28%
JWN	60 Neutral		―		―	2.20%	120.00%
WGO	54 Neutral	$1.03B	―	-1.35%	3.74%	-9.32%	-120.00%
FL	49 Neutral	$2.29B	194.63	-13.84%	―	-3.58%	-4.20%

Kohl's Corporate Events

Kohl’s Raises Full-Year Outlook Despite Sales Decline

Kohl’s Corporation reported its financial results for the second quarter of fiscal 2025, ending on August 2, 2025. Despite a 5.1% decrease in net sales and a 4.2% decline in comparable sales, the company managed to increase its gross margin by 28 basis points. The company also reported a significant gain from a legal settlement and improved its operating income and cash flow compared to the previous year. Kohl’s raised its full-year financial outlook, indicating confidence in its ongoing initiatives and operational discipline, despite the challenging economic environment.

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.