Want to see KSS full AI Analyst Report?
Top Page
Kohl's
(NYSE:KSS)
Select Model
Select Model
Rating:65Neutral
Price Target:
$21.00
▲(18.78% Upside)
Action:Reiterated
Date:09/06/26
The score reflects solid current cash generation and an attractive low valuation, supported by improving operational execution and a constructive price trend. The main constraint is fundamental risk from multi-year sales erosion and elevated leverage, which leaves earnings power sensitive to small margin and traffic pressures.
Positive Factors
Strong cash generation and liquidity improvement
Improved operating and free cash flow gives Kohl’s greater capacity to fund stores, digital initiatives, debt service, and shareholder returns. The stronger cash position and absence of ABL borrowings also provide flexibility to manage a cyclical retail environment over the coming quarters.
Negative Factors
Persistent sales and traffic erosion
Multi-year top-line contraction remains the central fundamental risk because declining traffic and transactions reduce operating leverage across Kohl’s store base. With sales still expected to be flat to down in FY26, continued erosion could limit earnings recovery and weaken the retailer’s ability to absorb fixed costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and liquidity improvement
Improved operating and free cash flow gives Kohl’s greater capacity to fund stores, digital initiatives, debt service, and shareholder returns. The stronger cash position and absence of ABL borrowings also provide flexibility to manage a cyclical retail environment over the coming quarters.
Read all positive factors
Kohl's Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business areas, highlighting which segments are driving growth and which may need strategic adjustments.
Breaks down revenue across different business areas, highlighting which segments are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyKohl's (KSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.20B
Dividend Yield2.57%
Average Volume (3M)4.21M
Price to Earnings (P/E)8.1
Beta (1Y)1.89
Revenue Growth-2.87%
EPS Growth28.86%
CountryUS
Employees84,000
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)2.41
Shares Outstanding113,376,440
10 Day Avg. Volume5,808,395
30 Day Avg. Volume4,208,829
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.80Price Target Upside-4.98% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering11
EPS Forecast (FY)2.01
Revenue Forecast (FY)$14.75B
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 digital channels (Kohls.com and related mobile experiences). Revenue is driven by product categories such as apparel (including women’s, men’s, and ki...
Kohl's Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 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
56
Neutral
Balance Sheet
49
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.43B | 15.53B | 16.22B | 17.48B | 18.10B | 19.43B |
| Gross Profit | 6.00B | 6.30B | 6.56B | 6.98B | 6.64B | 8.00B |
| EBITDA | 1.29B | 1.32B | 1.18B | 1.47B | 1.05B | 2.32B |
| Net Income | 270.00M | 272.00M | 109.00M | 317.00M | -19.00M | 938.00M |
Balance Sheet | ||||||
| Total Assets | 13.41B | 13.36B | 13.56B | 14.01B | 14.35B | 15.05B |
| Cash, Cash Equivalents and Short-Term Investments | 821.00M | 674.00M | 134.00M | 183.00M | 153.00M | 1.59B |
| Total Debt | 6.42B | 6.63B | 7.16B | 7.38B | 7.57B | 6.79B |
| Total Liabilities | 9.24B | 9.31B | 9.76B | 10.12B | 10.58B | 10.39B |
| Stockholders Equity | 4.17B | 4.05B | 3.80B | 3.89B | 3.76B | 4.66B |
Cash Flow | ||||||
| Free Cash Flow | 988.00M | 1.10B | 182.00M | 591.00M | -544.00M | 1.67B |
| Operating Cash Flow | 1.35B | 1.48B | 648.00M | 1.17B | 282.00M | 2.27B |
| Investing Cash Flow | -307.00M | -333.00M | -467.00M | -562.00M | -783.00M | -570.00M |
| Financing Cash Flow | -398.00M | -603.00M | -230.00M | -576.00M | -933.00M | -2.38B |
Kohl's Technical Analysis
Positive
17.68
Price Trends
18.29
Positive
16.55
Positive
17.08
Positive
Market Momentum
0.11
Negative
57.95
Neutral
94.46
Negative
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 17.68 is below the 20-day moving average (MA) of 18.53, below the 50-day MA of 18.29, and above the 200-day MA of 17.08, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 94.46 is Negative, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $10.26B | 15.04 | 34.24% | 4.75% | 0.21% | 20.42% | |
67 Neutral | $6.06B | 9.33 | 14.44% | 3.24% | -0.35% | 25.21% | |
65 Neutral | $2.20B | 8.06 | 6.68% | 2.57% | -2.87% | 28.86% | |
64 Neutral | $3.20B | 21.62 | 16.05% | 1.92% | 18.33% | 56.39% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
KSS
Kohl's
19.44
3.35
20.83%
DDS
Dillard's
656.69
103.18
18.64%
M
Macy's
23.05
6.58
39.99%
SHOO
Steven Madden
43.68
13.85
46.45%
Kohl's Corporate Events
Business Operations and StrategyExecutive/Board Changes
Kohl’s Appoints New Chief Merchandising Officer Amid Transition
Positive
Aug 31, 2026
On August 31, 2026, Kohl’s announced an executive transition in its merchandising leadership, with Chief Merchandising Officer Nick Jones set to depart effective October 1, 2026 under the terms of his existing executive compensation agreemen...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Kohl’s Raises 2026 Outlook Amid Margin Improvement
Positive
Aug 26, 2026
Kohl’s reported its second-quarter fiscal 2026 results on August 26, 2026, showing a 0.9% decline in net and comparable sales to $3.3 billion, but a 305-basis-point improvement in gross margin to 43.0%, aided in part by approximately $100 mi...
Business Operations and StrategyExecutive/Board Changes
Kohl’s Elevates Arianne Parisi to Chief Customer Officer
Neutral
Aug 25, 2026
On August 25, 2026, Kohl’s announced a significant leadership and organizational shift with the creation of a Chief Customer Officer role, consolidating marketing and digital functions under a single executive. As part of this realignment, t...
Business Operations and StrategyDividends
Kohl’s Declares Regular Quarterly Cash Dividend Payment
Positive
Aug 18, 2026
On August 18, 2026, Kohl’s Board of Directors declared a regular quarterly cash dividend of $0.125 per share on its common stock. The dividend will be paid on September 23, 2026, to shareholders who are on record as of the close of business ...
Business Operations and StrategyExecutive/Board Changes
Kohl’s updates board leadership and adds new director
Positive
Jul 29, 2026
On July 28, 2026, long-time director John E. Schlifske retired from Kohl’s Board and stepped down as independent Chair for personal reasons, following nearly 15 years of service that spanned major industry changes and the pandemic. The Board...
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 ...
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.