Overview

• U.S. retailer's Q4 net sales fell 3.9%, missing analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company's Q4 operating income rose to $212 mln from $126 mln year-over-year

Outlook

• Kohl's expects 2026 net sales and comparable sales to decrease by 2% or remain flat

• Company projects 2026 adjusted operating margin between 2.8% and 3.4%

• Kohl's forecasts 2026 adjusted diluted EPS between $1.00 and $1.60

Result Drivers

• COST MANAGEMENT - SG&A expenses decreased 4.9% year-over-year, contributing to improved operating income

• GROSS MARGIN IMPROVEMENT - Gross margin increased by 25 basis points, despite a decline in net sales

• INVENTORY REDUCTION - Inventory decreased by 7% year-over-year, aiding cash flow improvements

Company press release: ID:nBw3GHC88a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Net Sales	Miss	$4.97 bln	$5.03 bln (7 Analysts)
Q4 Adjusted EPS	Beat	$0.95	$0.85 (12 Analysts)
Q4 EPS		$1.07
Q4 Net Income		$125 mln
Q4 Gross Margin		33.10%
Q4 Comparable Sales Growth		-2.80%
Q4 EBIT		$212 mln
Q4 Pretax Profit		$153 mln

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 $22.00, about 48.6% above its March 9 closing price of $14.80

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 19 three months ago

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