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Kohl's
(NYSE:KSS)
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Rating:64Neutral
Price Target:
$19.00
▲(30.85% Upside)
Action:Reiterated
Date:07/02/26
KSS scores in the mid-range primarily because strong cash flow and improving liquidity are offset by severe revenue contraction and above-average leverage. Technicals add support as the stock is trading above key moving averages with positive momentum. Valuation is a notable positive (low P/E with a dividend), while earnings-call guidance and recent corporate actions are constructive but still tempered by ongoing comp declines, a recent quarterly loss, and cost/margin headwinds.
Positive Factors
Strong cash generation and free cash flow
Sustained operating cash flow (~$1.4B TTM) and robust free cash flow (~$1.29B) create durable financial optionality. This supports reinvestment in private brands, steady dividend payouts, opportunistic debt repurchases and capacity to fund omnichannel initiatives despite cyclical sales pressure.
Negative Factors
Severe revenue contraction
A multi-year, steep revenue decline (~-42.5% TTM) erodes scale economics and bargaining power with vendors. Shrinking top line makes it harder to cover fixed costs, limits reinvestment capacity, and raises the bar for returning to prior margin and ROE levels even if cash flow improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and free cash flow
Sustained operating cash flow (~$1.4B TTM) and robust free cash flow (~$1.29B) create durable financial optionality. This supports reinvestment in private brands, steady dividend payouts, opportunistic debt repurchases and capacity to fund omnichannel initiatives despite cyclical sales pressure.
Read all positive factors
Kohl's Key Performance Indicators (KPIs)
Any
Store Count
Indicates the total number of retail locations, reflecting the company's physical presence and potential reach to customers, which can impact sales and brand visibility.
Indicates the total number of retail locations, reflecting the company's physical presence and potential reach to customers, which can impact sales and brand visibility.
Data provided by:
The Fly
The FlyKohl's (KSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.06B
Dividend Yield2.33%
Average Volume (3M)5.80M
Price to Earnings (P/E)7.5
Beta (1Y)1.88
Revenue Growth-3.80%
EPS Growth122.79%
CountryUS
Employees87,000
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)2.44
Shares Outstanding113,399,994
10 Day Avg. Volume5,563,211
30 Day Avg. Volume5,795,888
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.48
Price to Sales (P/S)0.13
P/FCF Ratio1.77
Enterprise Value/Market Cap3.87
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit1.31
Enterprise Value/Ebitda6.10
Forecast
1Y Price Target
$15.75Price Target Upside8.47% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering9
EPS Forecast (FY)1.42
Revenue Forecast (FY)$14.67B
Kohl's Business Overview & Revenue Model
Company Description
Kohl's Corporation functions as a prominent retail chain operating throughout the United States. It provides customers with a wide array of branded merchandise, including clothing, shoes, fashion accessories, beauty supplies, and home decor, which...
How the Company Makes Money
Kohl's primarily makes money by selling merchandise to consumers through its physical stores and its website/mobile channels. Revenue is driven by retail sales across key product categories (apparel and footwear; accessories; beauty; and home). Th...
Kohl's Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call presented a mix of constructive operational progress and remaining near‑term challenges. Positives include stabilization of the core Kohl's card customer (flat comps, ~600 bps improvement vs. Q4), strong private‑brand performance (+6% comps) and spring seasonal strength (mid‑teens), digital growth (+4%), meaningful balance sheet improvement (cash up, ABL cleared) and inventory/turn improvements (~8% lower inventory and turns +8%). Headwinds remain: Q1 produced a small net loss (‑$14M), overall comps still declined (‑1.1%), store transactions are down, Sephora/makeup and certain categories (men's, footwear) underperformed, and margin pressure from increased digital/shipping and embedded fuel costs is expected. Management reaffirmed full‑year guidance and outlined a clear plan (assortment curation, proprietary brand investment, omnichannel/trip assurance, marketplace expansion), so while near‑term sales and margin pressure persist, the directional operational and financial improvements give the company a cautiously optimistic outlook.Positive Updates
Best Quarterly Comparable Sales in Over Four Years
Comparable sales declined 1.1% but management noted this was the best quarterly performance in over four years; net sales declined 1.7% (difference driven by closed-store timing).
Negative Updates
Sales Decline and Transaction Weakness
Net sales declined 1.7% and comparable sales declined 1.1%, with the primary driver a decrease in transactions. The stores channel underperformed, running down low single digits.
Read all updates
Q1-2026 Updates
Positive
Negative
Best Quarterly Comparable Sales in Over Four Years
Comparable sales declined 1.1% but management noted this was the best quarterly performance in over four years; net sales declined 1.7% (difference driven by closed-store timing).
Read all positive updates
Company Guidance
Kohl’s reaffirmed its FY26 guidance with comparable sales to be down 2% to flat vs. 2025, operating margin targeted at 2.8%–3.4% and diluted EPS of $1.00–$1.60; full‑year capital expenditures are expected to be $350–$400M, inventory down low‑ to middle‑single‑digits, and fuel costs are embedded at current rates. Management expects roughly $900M of operating cash flow and about $500–$600M of free cash flow (guidance excludes any AFA tariff refunds — the company submitted $140M of claims and is eligible for $190M), and will prioritize investing in the business, the $0.125 quarterly dividend (Q2), opportunistic debt repurchases and potential future buybacks. For context, Q1 results (which drove the reaffirmation) included net sales -1.7% and comps -1.1% (would have been -0.6% including marketplace GMV), proprietary brands +6%, spring seasonal up mid‑teens, digital +4% while stores were down low‑single‑digits, cash of $429M with no ABL borrowings (vs. $153M cash and $545M ABL borrowings LY, >$800M net cash improvement), inventory -8% with receipts +1% and an 8% turn improvement, SG&A down ~$20M, depreciation $174M, interest $63M, tax rate 15% and a Q1 net loss of $14M (loss per diluted share $0.13).Kohl's Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
55
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.46B | 15.53B | 16.22B | 17.48B | 18.10B | 19.43B |
| Gross Profit | 6.09B | 6.30B | 6.56B | 6.98B | 6.64B | 8.00B |
| EBITDA | 1.31B | 1.32B | 1.18B | 1.47B | 1.05B | 2.32B |
| Net Income | 272.00M | 272.00M | 109.00M | 317.00M | -19.00M | 938.00M |
Balance Sheet | ||||||
| Total Assets | 13.16B | 13.36B | 13.56B | 14.01B | 14.35B | 15.05B |
| Cash, Cash Equivalents and Short-Term Investments | 429.00M | 674.00M | 134.00M | 183.00M | 153.00M | 1.59B |
| Total Debt | 6.53B | 6.63B | 7.16B | 7.38B | 7.57B | 6.79B |
| Total Liabilities | 9.14B | 9.31B | 9.76B | 10.12B | 10.58B | 10.39B |
| Stockholders Equity | 4.02B | 4.05B | 3.80B | 3.89B | 3.76B | 4.66B |
Cash Flow | ||||||
| Free Cash Flow | 1.21B | 1.10B | 182.00M | 591.00M | -544.00M | 1.67B |
| Operating Cash Flow | 1.40B | 1.48B | 648.00M | 1.17B | 282.00M | 2.27B |
| Investing Cash Flow | -309.00M | -333.00M | -467.00M | -562.00M | -783.00M | -570.00M |
| Financing Cash Flow | -813.00M | -603.00M | -230.00M | -576.00M | -933.00M | -2.38B |
Kohl's Technical Analysis
Positive
14.52
Price Trends
15.19
Positive
14.97
Positive
16.58
Positive
Market Momentum
1.04
Positive
58.58
Neutral
52.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KSS, the sentiment is Positive. The current price of 14.52 is below the 20-day moving average (MA) of 17.38, below the 50-day MA of 15.19, and below the 200-day MA of 16.58, indicating a bullish trend. The MACD of 1.04 indicates Positive momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 52.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KSS.
Kohl's Risk Analysis
Kohl's disclosed 23 risk factors in its most recent earnings report. Kohl's reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kohl's Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.55B | 13.01 | 33.85% | 3.99% | 0.62% | 16.26% | |
70 Outperform | $6.12B | 9.41 | 14.44% | 3.23% | -0.35% | 25.21% | |
66 Neutral | $2.92B | 37.31 | 8.78% | 1.97% | 15.48% | -54.34% | |
64 Neutral | $2.06B | 7.45 | 6.83% | 2.33% | -3.80% | 122.79% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
KSS
Kohl's
18.19
9.44
107.96%
DDS
Dillard's
547.21
111.67
25.64%
M
Macy's
23.25
11.26
93.83%
SHOO
Steven Madden
39.92
15.47
63.29%
Kohl's Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Kohl’s Extends Revolving Credit Facility, Enhances Liquidity
Positive
Jul 1, 2026
On June 30, 2026, Kohl’s Corporation entered into a second amendment to its revolving credit facility with Wells Fargo Bank and other lenders, extending the facility’s maturity date by five years to June 30, 2031 and adjusting pricing ...
Business Operations and StrategyExecutive/Board Changes
Kohl’s Names Elliott Rodgers as New Chief Operating Officer
Positive
Jun 15, 2026
Kohl’s announced on June 15, 2026 that retail veteran Elliott Rodgers has been appointed Chief Operating Officer, effective September 9, 2026, reporting to CEO Michael J. Bender. He will oversee enterprise operations, including nearly 1,200 ...
Business Operations and StrategyDividendsFinancial Disclosures
Kohl’s Affirms 2026 Outlook After Q1 Sales Dip
Neutral
May 28, 2026
Kohl’s Corp. is a leading U.S. omnichannel retailer focused on family apparel, home goods and related merchandise, operating more than 1,100 stores in 49 states as well as e-commerce channels including Kohls.com and the Kohl’s app. The...
Executive/Board ChangesShareholder Meetings
Kohl’s Shareholders Back Board Slate and Executive Pay
Positive
May 22, 2026
At its annual meeting held on May 20, 2026, Kohl’s shareholders elected eight board nominees to one-year terms, confirming the company’s existing board slate despite varying levels of support among individual directors. Investors also ...
DividendsRegulatory Filings and ComplianceShareholder Meetings
Kohl’s Declares Quarterly Dividend, Highlights Shareholder Focus
Positive
May 20, 2026
On May 20, 2026, Kohl’s Board of Directors declared a regular quarterly cash dividend of $0.125 per share on its common stock, continuing its practice of returning capital to shareholders. The dividend will be paid on June 24, 2026, to inves...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.