Kohl's (KSS) AI Stock Analysis

• Market Cap: $1.00B
• Dividend Yield: 5.6%
• Average Volume (3M): 9.45M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.42
• Revenue Growth: -7.03%
• EPS Growth: -56.59%
• Country: US
• Employees: 87,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Department Stores
• EPS (TTM): -0.13
• Shares Outstanding: 112,041,680
• 10 Day Avg. Volume: 8,288,665
• 30 Day Avg. Volume: 9,447,868
• PEG Ratio: -0.99
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.37
• Enterprise Value/Market Cap: 12.11
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 2.74
• Enterprise Value/Ebitda: 2.36
• 1Y Price Target: $6.67
• Price Target Upside: -21.25% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 12

• Rating: 65 Neutral
• Price Target: $9.50 ▲(12.16%Upside)

Kohl's overall stock score reflects a challenging financial environment with declining revenues and high leverage. Despite these challenges, the company exhibits some positive aspects such as a low valuation and strong dividend yield. Technical analysis indicates potential short-term strength, but long-term performance remains uncertain. The recent change in CEO adds an element of risk that may affect strategic execution.

Positive Factors

Financial Performance

Better than expected comps of -4.3% to -4% drove upside to EPS in prelim results.

Management Confidence

Management feels confident in their ability to replace Buchanan without impacting current key strategies.

Tariff Mitigation

Tariff mitigation strategies are providing flexibility as Kohl’s has diversified its country exposure within the supply chain.

Negative Factors

Liquidity Risk

There is greater liquidity risk compared to peers, contributing to the conviction in the Underweight rating.

Sales Challenges

Sales trends remain challenged.

Turnaround Challenges

The recent CEO change is likely to elongate the company's already difficult turnaround.

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 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 revenue and profitability, high leverage, and negative growth in free cash flow. Despite moderate operational efficiency, the company struggles to convert revenue into profit. High debt levels pose financial risks, while cash flow stability provides some reassurance.

Income Statement

Kohl's has experienced a decline in both total revenue and profitability in recent years. The TTM (Trailing-Twelve-Months) gross profit margin stands at 27.5%, showing moderate efficiency in controlling production costs. However, net profit margin is low at 0.75%, indicating challenges in translating revenue into profit. Revenue has decreased significantly over the years, with a noticeable drop from $19.43 billion in 2022 to $16.07 billion in TTM 2025, indicating a negative growth trend. The EBIT and EBITDA margins for TTM are 2.8% and 7.3%, respectively, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.95, which suggests significant leverage and potential financial risk. The return on equity (ROE) for the TTM period is 3.2%, indicating low efficiency in generating profit from shareholders' equity. The equity ratio stands at 27.7%, reflecting moderate reliance on equity financing. Overall, the balance sheet highlights potential risks due to high leverage.

Cash Flow

Kohl's cash flow shows signs of stability, with an operating cash flow to net income ratio of 4.65, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 0.93, showing improved efficiency in converting income to cash flow. However, free cash flow has declined from $1.67 billion in 2022 to $113 million in TTM 2025, reflecting a negative growth trajectory. Despite this, cash flow management appears relatively stable.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
16.07B	16.22B	17.48B	18.10B	19.43B	15.96B
	Gross Profit
4.42B	37.20M	6.23B	6.64B	8.00B	5.59B
	EBIT
450.00M	433.00M	717.00M	246.00M	1.68B	-300.00M
	EBITDA
1.18B	1.18B	1.47B	1.05B	2.32B	612.00M
	Net Income Common Stockholders
121.00M	109.00M	317.00M	-19.00M	938.00M	-163.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
153.00M	134.00M	183.00M	153.00M	1.59B	2.27B
	Total Assets
13.64B	13.56B	14.01B	14.35B	15.05B	15.34B
	Total Debt
7.37B	7.16B	7.38B	7.57B	6.79B	6.74B
	Net Debt
7.22B	7.03B	7.19B	7.41B	5.20B	4.47B
	Total Liabilities
9.86B	9.76B	10.12B	10.58B	10.39B	10.14B
	Stockholders Equity
3.78B	3.80B	3.89B	3.76B	4.66B	5.20B
Cash Flow		Free Cash Flow
113.00M	182.00M	591.00M	-544.00M	1.67B	1.00B
	Operating Cash Flow
563.00M	648.00M	1.17B	282.00M	2.27B	1.34B
	Investing Cash Flow
-449.00M	-467.00M	-562.00M	-783.00M	-570.00M	-137.00M
	Financing Cash Flow
-189.00M	-230.00M	-576.00M	-933.00M	-2.38B	347.00M

Kohl's Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.47
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 8.47 is above the 20-day moving average (MA) of 8.28, above the 50-day MA of 7.51, and below the 200-day MA of 12.65, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 26.76 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	$6.48B	11.44	30.93%	0.24%	-3.94%	-17.78%
M	73 Outperform	$3.05B	5.68	12.92%	6.49%	-3.77%	4607.98%
KSS	65 Neutral	$1.00B	8.27	3.19%	5.60%	-7.03%	-56.59%
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
WGO	62 Neutral	$897.65M	―	-0.45%	4.31%	-12.29%	-105.55%
JWN	60 Neutral	$4.12B	14.17	29.58%	3.08%	2.20%	120.00%
FL	56 Neutral	$2.30B	194.63	-12.85%	―	-2.62%	0.93%

Kohl's Corporate Events

Kohl’s Completes $360M Senior Secured Notes Offering

On May 30, 2025, Kohl’s Corporation completed a private offering of $360 million in senior secured notes due 2030, bearing an interest rate of 10%. The proceeds were used to repay borrowings under the company’s revolving credit facility, with plans to use the facility to repay notes due in 2025. The notes are secured by equity interests and distribution centers, with guarantees from subsidiaries, and governed by an indenture that includes covenants limiting additional indebtedness and asset dispositions.

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 Reports Q1 2025 Financial Results

On May 29, 2025, Kohl’s Corporation reported its first-quarter fiscal 2025 financial results, highlighting a 4.1% decrease in net sales and a 3.9% drop in comparable sales compared to the previous year. Despite these declines, the company saw a 37 basis point increase in gross margin and reduced its SG&A expenses by 5.2%. Operating income rose to $60 million, and the net loss was reduced to $15 million from $27 million the prior year. Interim CEO Michael Bender expressed optimism about the company’s progress and future potential, affirming the full-year 2025 financial outlook.

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 $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.