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Kohl's (KSS) AI Stock Analysis
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Kohl's
(NYSE:KSS)
The score is driven primarily by a mixed financial profile—strong current free cash flow and improved profitability offset by steep revenue decline, thin margins, and elevated leverage. Technically, the stock shows strong upward momentum above key moving averages, though signals are near overbought. Valuation is supportive (low P/E plus dividend), while corporate actions (raised outlook, debt reduction, buyback restart, leadership refresh) add a modest positive tilt but do not fully offset ongoing top-line risk.
Kohl's Key Performance Indicators (KPIs)
Store CountIndicates the total number of retail locations, reflecting the company's physical presence and potential reach to customers, which can impact sales and brand visibility.
Store count shows a targeted consolidation in early 2025 followed by only minor trimming into Q1‑26, signaling management chose portfolio pruning over broad retrenchment. Cash and inventory improvements plus planned investments (Sephora rollouts, proprietary brands, impulse fixtures and omnichannel) indicate the company is redeploying capital into higher‑productivity locations; that should boost sales‑per‑store and turns, but overall comps and transactions may remain pressured until assortment and digital initiatives fully regain momentum.
The FlyKohl's (KSS) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $2.76B
- Dividend Yield
- 2.06%
- Average Volume (3M)
- 4.25M
- Price to Earnings (P/E)
- 10.1
- Beta (1Y)
- 2.03
- Revenue Growth
- -2.87%
- EPS Growth
- 28.86%
- Country
- US
- Employees
- 84,000
- Sector
- General
- Sector Strength
- 55
- Industry
- Department Stores
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 ar...
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 kids)...
Kohl's Earnings Call Summary
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.
Q1-2026 Updates
Positive Updates
Negative 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
Mixed fundamentals: profitability has rebounded from 2023 losses (TTM net margin ~1.8%, EBIT ~3.9%) and free cash flow is strong (~$1.1B TTM), but multi-year revenue erosion (about -20% TTM) and thin margins keep earnings power fragile. Leverage remains meaningful (debt-to-equity ~1.6), limiting flexibility if sales weaken.
Income Statement
56NeutralBalance Sheet
49NeutralCash Flow
71Positive| 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
Price Trends
Market Momentum
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 24.31 is above the 20-day moving average (MA) of 22.07, above the 50-day MA of 19.49, and above the 200-day MA of 16.79, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 68.32 is Neutral, neither overbought nor oversold. The STOCH value of 73.71 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.
Latest Risks Added
0 New RisksKohl's Peers Comparison
Overall Rating
DDS76Outperform
M76Outperform
AEO72Outperform
BKE69Neutral- KSS66Neutral
DBI57Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| DDS | 76Outperform | $10.02B | 14.71 | 34.24% | 4.87% | 0.21% | 20.42% |
| M | 76Outperform | $6.30B | 8.64 | 15.81% | 3.14% | 0.34% | 58.61% |
| AEO | 72Outperform | $3.29B | 9.80 | 20.04% | 2.55% | 8.21% | 89.24% |
| BKE | 69Neutral | $2.39B | 10.59 | 46.91% | 9.49% | 6.22% | 8.74% |
| KSS | 66Neutral | $2.76B | 10.08 | 6.68% | 2.06% | -2.87% | 28.86% |
| DBI | 57Neutral | $344.57M | 20.42 | 5.83% | 2.97% | -0.84% | ― |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| KSS | Kohl's Corporation | 24.31 | 8.39 | 52.72% | |
| AEO | American Eagle Outfitters | 19.61 | 3.50 | 21.73% | |
| BKE | The Buckle Inc. | 46.38 | -4.26 | -8.41% | |
| DDS | Dillard's | 641.24 | 65.07 | 11.29% | |
| DBI | Designer Brands | 6.74 | 3.14 | 87.33% | |
| M | Macy's | 24.11 | 4.85 | 25.21% |
Kohl's Corporate Events
Kohl’s adds Stacy Taffet to expanded board
PositiveOn October 29, 2026, Kohl’s Board of Directors expanded from eight to nine members and appointed Stacy Taffet, Chief Growth and Marketing Officer at The Hershey Company, as an independent director with an initial term running to the 2027 annual...
Kohl’s Appoints New Chief Merchandising Officer Amid Transition
PositiveOn 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 agreement....
Kohl’s Raises 2026 Outlook Amid Margin Improvement
PositiveKohl’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 milli...
Kohl’s Elevates Arianne Parisi to Chief Customer Officer
NeutralOn 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, the...
Kohl’s Declares Regular Quarterly Cash Dividend Payment
PositiveOn 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 on...
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.
Date of analysis: Oct 30, 2026