The Q1 report showed operational stabilization (best comp in 4+ years) and affirmed full-year guidance, which should cap downside after the 89% sell-side bearish consensus. However, with negative operating cash flow and continued revenue decline, the stock lacks a near-term catalyst. Watch for the back-to-school season and Sephora MAC rollout in Fall 2026 as potential inflection points.
Price Chart
Executive Summary
Kohl's reported Q1 FY2026 net sales of $2.998B (down 1.7% YoY) and a diluted loss per share of ($0.13), in line with the prior year's loss. Comparable sales improved to -1.1%, the best performance in over four years. The company affirmed its full-year 2026 guidance: net sales flat to (2)% decline, adjusted diluted EPS of $1.00-$1.60. While revenue continued to decline, the results showed sequential improvement in comparable sales and gross margin stability, but operating income fell to $46M from $60M and operating cash flow was negative $74M. The stock's highly bearish consensus (89% sell/strong sell) suggests the market expected more, but the guidance affirmation prevents a further negative catalyst.
Key Financial Metrics
Key Facts
- Net sales down 1.7% YoY to ~$3.0B; comparable sales down 1.1% (best in 4+ years)
- Diluted loss per share ($0.13), same as prior year; net loss $14M vs $15M YoY
- Gross margin 39.9% (+4 bps YoY); SG&A down 1.6% but deleveraged 15 bps as % of revenue
- Operating income fell to $46M from $60M; operating cash flow was negative $74M
- Full-year 2026 guidance affirmed: net sales flat to (2)%, adjusted EPS $1.00-$1.60, capex $350-400M
- Quarterly dividend maintained at $0.125/share; repaid $50M of debt at a discount in Q1
- Balance sheet improved: no revolver borrowings ($0 vs $545M a year ago), $429M cash
Financial Impact
Net sales $2.998B vs consensus $3.03B (slight miss); diluted EPS ($0.13) vs consensus ($0.18) (beat on loss being smaller than forecast). Revenue declined 1.7% YoY; no other quantifiable financial impact specified.
Risk Factors
- Continued net sales decline (down 1.7% YoY) with no sign of positive growth in guidance (flat to down 2%)
- Negative operating cash flow ($74M use) despite improved inventory management; need to see cash flow turn positive
- High leverage (4.2x net debt+leases/EBITDAR unadjusted) constrains financial flexibility
- 89% analyst sell/strong sell rating reflects deep skepticism on turnaround
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-242967 |
| Document: d84873d8k.htm | 0001193125-26-242967 |
| Document: d84873dex992.htm | 0001193125-26-242967 |
| Document: 0001193125-26-242967-index-headers.html | 0001193125-26-242967 |
| Document: 0001193125-26-242967-index.html | 0001193125-26-242967 |
| Document: 0001193125-26-242967.txt | 0001193125-26-242967 |
| 8-K Data (Synthetic) | 0001193125-26-242967 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 26, 2026 5w ago | 8-K | $17.94 $17.24 | ▼ −3.90% | ▼ −4.13% | $18.95 (+5.64%) |
Aug 4, 2026 8w ago | Insider Cluster | $20.10 $17.82 | ▼ −11.34% | ▼ −10.11% | $18.95 (−5.71%) |
May 28, 2026 18w ago | 8-K | $15.57 $19.09 | ▲ +22.63% | ▲ +25.32% | $18.95 (+21.75%) |
May 20, 2026 19w ago | 8-K | $12.69 $17.25 | ▲ +35.97% | ▲ +35.42% | $18.95 (+49.39%) |
Apr 15, 2026 24w ago | 144 | $14.30 $12.73 | ▼ −10.96% | ▼ −17.00% | $18.95 (+32.56%) |
Apr 10, 2026 25w ago | DEFA14A | $13.28 $14.35 | ▲ +8.09% | ▼ −0.44% | $18.95 (+42.76%) |
Mar 4, 2026 30w ago | 8-K | $15.66 $12.78 | ▼ −18.39% | ▼ −14.61% | $18.95 (+21.05%) |
Feb 25, 2026 31w ago | 8-K | $17.14 $12.69 | ▼ −25.96% | ▼ −20.73% | $18.95 (+10.60%) |
US Market Status
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