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Kohl's Q2 EPS of $0.56 beat estimates but slipped from last years $0.59.
Revenues fell 5% to $3.55B, though above the consensus mark, with comps down 4.2%.
Gross margin rose to 39.9% and operating income surged to $279M, up from $166M.
Kohl's Corporation (KSS - Free Report) reported second-quarter fiscal 2025 results, wherein adjusted earnings per share (EPS) of 56 cents surpassed the Zacks Consensus Estimate of 33 cents. The bottom line showed a decline from the year-ago period’s EPS of 59 cents.
Total revenues were $3,546 million, down 5% from the prior-year quarter’s $3,732 million. Nevertheless, the top line surpassed the Zacks Consensus Estimate of $3,476 million. The company’s net sales fell 5.1% to $3,347 million, while other revenues fell 3.9% to $199 million. We note that comparable sales dipped 4.2% year over year. We expected comparable sales to decrease 5.6%.
Driven by better-than-expected results, Kohl’s shares have jumped more than 15% in the trading hours. This Zacks Rank #3 (Hold) company’s shares have gained 60.9% in the past three months compared with the industry’s growth of 27.8%.
Kohl’s Quarterly Margin Highlights
Kohl's gross margin expanded 28 basis points (bps) to 39.9% in the reported quarter. We expected a gross margin increase of 20 bps. SG&A expenses dropped 4.1% to $1,199 million. As a percentage of total revenues, SG&A expenses increased 32 bps to 33.8%. We anticipated SG&A expenses, as a percentage of net sales, to increase 30 bps.
Kohl's Corporation Price, Consensus and EPS Surprise
KSS posted an operating income of $279 million, up from $166 million in the year-ago period. The operating income margin expanded 343 bps to 7.9%.
KSS’ Financial Health Snapshot & Other Updates
Kohl's ended the quarter with cash and cash equivalents of $174 million and shareholders’ equity of $3,927 million. Net cash provided by operating activities was $506 million for the six months ending Aug. 2, 2025.
Management expects capital expenditures of $400 million for fiscal 2025.
On Aug. 12, 2025, Kohl’s declared a quarterly cash dividend of 12.50 cents per share, payable Sept. 24, to its shareholders of record as of Sept. 10.
What to Expect From KSS in FY25?
For fiscal 2025, Kohl's continues to foresee a net sales decline of 5-6%. Comparable sales are projected to decline 4-5% during the year. The operating margin is expected to be in the range of 2.5-2.7% in fiscal 2025. Management anticipates full-year EPS to be between 50 cents and 80 cents.
The consensus estimate for Levi Strauss’ current financial-year EPS indicates growth of 4% from the year-ago figure. LEVI delivered an average earnings surprise of 25.9% in the trailing four quarters.
Genesco Inc. (GCO - Free Report) operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy) at present. GCO delivered a trailing four-quarter earnings surprise of 32.4%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings and sales indicates growth of 61.7% and 1.5%, respectively, from the year-ago period’s reported figures.
Allbirds, Inc. (BIRD - Free Report) , a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.
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Kohl's Q2 Earnings Beat Estimates, Comparable Sales Dip 4.2% Y/Y
Key Takeaways
Kohl's Corporation (KSS - Free Report) reported second-quarter fiscal 2025 results, wherein adjusted earnings per share (EPS) of 56 cents surpassed the Zacks Consensus Estimate of 33 cents. The bottom line showed a decline from the year-ago period’s EPS of 59 cents.
Total revenues were $3,546 million, down 5% from the prior-year quarter’s $3,732 million. Nevertheless, the top line surpassed the Zacks Consensus Estimate of $3,476 million. The company’s net sales fell 5.1% to $3,347 million, while other revenues fell 3.9% to $199 million. We note that comparable sales dipped 4.2% year over year. We expected comparable sales to decrease 5.6%.
Driven by better-than-expected results, Kohl’s shares have jumped more than 15% in the trading hours. This Zacks Rank #3 (Hold) company’s shares have gained 60.9% in the past three months compared with the industry’s growth of 27.8%.
Kohl’s Quarterly Margin Highlights
Kohl's gross margin expanded 28 basis points (bps) to 39.9% in the reported quarter. We expected a gross margin increase of 20 bps. SG&A expenses dropped 4.1% to $1,199 million. As a percentage of total revenues, SG&A expenses increased 32 bps to 33.8%. We anticipated SG&A expenses, as a percentage of net sales, to increase 30 bps.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's Corporation price-consensus-eps-surprise-chart | Kohl's Corporation Quote
KSS posted an operating income of $279 million, up from $166 million in the year-ago period. The operating income margin expanded 343 bps to 7.9%.
KSS’ Financial Health Snapshot & Other Updates
Kohl's ended the quarter with cash and cash equivalents of $174 million and shareholders’ equity of $3,927 million. Net cash provided by operating activities was $506 million for the six months ending Aug. 2, 2025.
Management expects capital expenditures of $400 million for fiscal 2025.
On Aug. 12, 2025, Kohl’s declared a quarterly cash dividend of 12.50 cents per share, payable Sept. 24, to its shareholders of record as of Sept. 10.
What to Expect From KSS in FY25?
For fiscal 2025, Kohl's continues to foresee a net sales decline of 5-6%. Comparable sales are projected to decline 4-5% during the year. The operating margin is expected to be in the range of 2.5-2.7% in fiscal 2025. Management anticipates full-year EPS to be between 50 cents and 80 cents.
Key Picks
Levi Strauss & Co. (LEVI - Free Report) , designer and marketer of jeans, casual wear and related accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Levi Strauss’ current financial-year EPS indicates growth of 4% from the year-ago figure. LEVI delivered an average earnings surprise of 25.9% in the trailing four quarters.
Genesco Inc. (GCO - Free Report) operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy) at present. GCO delivered a trailing four-quarter earnings surprise of 32.4%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings and sales indicates growth of 61.7% and 1.5%, respectively, from the year-ago period’s reported figures.
Allbirds, Inc. (BIRD - Free Report) , a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.