Overview

• U.S. omnichannel retailer's fiscal Q1 net sales fell 1.7%, slightly beating analyst expectations

• Comparable sales declined 1.1% and net loss was $14 mln, or $0.13 per share

• Company affirmed full-year 2026 outlook

Outlook

• Kohl's sees full-year net sales and comparable sales down 2% to flat

• Company expects 2026 adjusted operating margin of 2.8% to 3.4%

• Kohl's forecasts 2026 adjusted diluted EPS of $1.00 to $1.60

Result Drivers

• COST CONTROL - Co said disciplined expense management contributed to results

• INVENTORY MANAGEMENT - Inventory levels were reduced 8% year-over-year, which co said helped improve the balance sheet

• SALES INITIATIVES - Co said key initiatives led to best comparable sales performance in over four years, despite overall sales decline

Company press release: ID:nBw3LMK2ka

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Sales	Slight Beat*	$3 bln	$2.99 bln (7 Analysts)
Q1 EPS		-$0.13
Q1 Net Income		-$14 mln
Q1 Gross Margin		39.90%
Q1 Comparable Sales Growth		-1.10%
Q1 EBIT		$46 mln
Q1 Pretax Profit		-$17 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy."

• Wall Street's median 12-month price target for Kohls Corp is $15.00, about 16% above its May 27 closing price of $12.93

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

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