Kohl’s first quarter results were received positively by the market, reflecting stabilization in key customer segments and progress on several strategic initiatives. Management credited the recovery to improvements in proprietary brands, particularly in women’s and kids’ apparel, and ongoing inventory management efforts. CEO Michael J. Bender described the quarter as “the best quarterly performance in over 4 years,” emphasizing that proprietary brand sales were up 6% and that the company’s core Kohl’s card customer stabilized. The company also saw notable progress in its spring assortment and digital sales, which helped offset continued softness in store traffic.
Is now the time to buy KSS? Find out in our full research report (it’s free for active Edge members).
Kohl's (KSS) Q1 CY2026 Highlights:
- Revenue: $3.17 billion vs analyst estimates of $3.16 billion (2% year-on-year decline, in line)
- Adjusted EPS: -$0.13 vs analyst estimates of -$0.19 (31.5% beat)
- Management reiterated its full-year Adjusted EPS guidance of $1.30 at the midpoint
- Operating Margin: 1.5%, in line with the same quarter last year
- Locations: 1,151 at quarter end, down from 1,153 in the same quarter last year
- Same-Store Sales fell 1.1% year on year (-3.9% in the same quarter last year)
- Market Capitalization: $1.74 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Kohl's’s Q1 Earnings Call
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Mark Altschwager (Baird): Asked about key drivers behind improved category balance and the sustainability of positive trends. CEO Michael J. Bender emphasized proprietary brand investments and clean inventory execution as critical, while CFO Jill Timm noted momentum from earlier transitions into spring seasonal goods.
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Oliver Chen (TD Cowen): Inquired about underperforming store traffic and categories, and the impact of trip assurance initiatives. Timm detailed improvements in apparel in-stocks and investments in store experience, expecting further gains in men’s and footwear later in the year.
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Robert Drbul (BTIG): Requested detail on credit business trends and cost savings. Timm highlighted stabilization in Kohl’s card customer health, with payment rates up and loss rates down, and credited technology and AI for corporate expense reductions.
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Paul Lejuez (Citigroup): Asked about the role of tax refunds and proprietary brand penetration in future guidance. Bender said tax refunds have limited impact on Kohl’s, while proprietary brand growth will be dictated by customer demand rather than fixed targets.
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Brooke Roach (Goldman Sachs): Sought clarification on gross margin guidance amid proprietary brand growth and digital expansion. Timm outlined margin tailwinds from private brands, but offset by digital shipping costs and necessary promotional investments.
Catalysts in Upcoming Quarters
Going forward, the StockStory team will be monitoring (1) the progression of proprietary brand expansion and customer adoption, (2) improvements in store traffic and the effectiveness of in-stock and trip assurance initiatives, and (3) digital sales growth driven by AI-powered enhancements and marketplace scale-up. We will also track Sephora category performance and margin management as key indicators of strategic execution.
Kohl's currently trades at $15.41, up from $12.93 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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