We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
KSS beat Q3 revenue and EPS estimates despite year-over-year declines in both metrics.
Kohl's raised its fiscal 2025 outlook for net sales, comparable sales and operating margin.
Full-year EPS guidance increased to $1.25-$1.45, well above the company's earlier projection.
Kohl's Corporation ((KSS - Free Report) ) reported third-quarter fiscal 2025 results, wherein the top and bottom lines beat the Zacks Consensus Estimate, while both decreased from the year-ago period’s actuals.
Kohl's posted earnings of 10 cents per share, down from 20 cents in the year-ago quarter. Nevertheless, the bottom line outperformed the Zacks Consensus Estimate of a loss of 19 cents.
Kohl's Corporation Price, Consensus and EPS Surprise
Total revenues were $3,575 million, down 3.6% from the prior-year quarter’s $3,710 million. However, the top line beat the Zacks Consensus Estimate of $3,486 million. The company’s net sales fell 2.8% to $3,407 million, while other revenues fell 17.2% to $168 million. We note that comparable sales dipped 1.7% year over year. We expected comparable sales to decrease 4.6%.
Kohl’s Quarterly Margin Highlights
Kohl's gross margin expanded 51 basis points (bps) to 39.6% in the reported quarter. We expected a gross margin decrease of 10 bps. SG&A expenses dropped 2.1% to $1,263 million. As a percentage of total revenues, SG&A expenses increased 55 bps to 35.3%. We anticipated SG&A expenses, as a percentage of net sales, to increase 60 bps.
KSS posted an adjusted operating income of $77 million, down from $98 million in the year-ago period. The operating income margin was 2.2%.
KSS’ Financial Health Snapshot & Other Updates
Kohl's ended the quarter with cash and cash equivalents of $144 million and shareholders’ equity of $3,930 million.
For the nine months of fiscal 2025 ending Nov. 1, 2025, net cash provided by operating activities was $630 million. Management expects capital expenditures of $400 million for fiscal 2025.
On Nov. 12, 2025, Kohl’s declared a quarterly cash dividend of 12.50 cents per share, payable Dec. 24, to its shareholders of record as of Dec. 10.
What to Expect From KSS in FY25?
For fiscal 2025, Kohl’s now expects net sales to decline 3.5-4%, an improvement from its prior forecast of a 5-6% drop. Comparable sales are projected to fall 2.5-3%, compared with the earlier outlook of a 4-5% decline.
The company now anticipates an adjusted operating margin of 3.1-3.2%, up from the previously projected range of 2.5-2.7%. Full-year EPS is now estimated at $1.25-$1.45, significantly higher than the earlier guidance of 50 cents to 80 cents.
This Zacks Rank #3 (Hold) company’s shares have gained 13.7% in the past three months compared with the industry’s growth of 24.7%.
The consensus estimate for Ulta Beauty’s current fiscal-year sales implies growth of 6.8%, from the year-ago figures. ULTA delivered a trailing four-quarter earnings surprise of 16.3%, on average.
Five Below, Inc. ((FIVE - Free Report) ) operates as a specialty value retailer in the United States. It has a Zacks Rank #2 at present. Five Below delivered a trailing four-quarter earnings surprise of 50.5%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings implies an increase of 16.2% and 1.2%, respectively, from the prior-year levels.
Ross Stores, Inc. ((ROST - Free Report) ), operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. It carries a Zacks Rank #2 at present. Ross Stores delivered a trailing four-quarter earnings surprise of 6.7%, on average.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year sales implies an increase of 4.9%, from the prior-year levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Kohl's Q3 Earnings Beat Estimates, Fiscal 2025 Guidance Raised
Key Takeaways
Kohl's Corporation ((KSS - Free Report) ) reported third-quarter fiscal 2025 results, wherein the top and bottom lines beat the Zacks Consensus Estimate, while both decreased from the year-ago period’s actuals.
Kohl's posted earnings of 10 cents per share, down from 20 cents in the year-ago quarter. Nevertheless, the bottom line outperformed the Zacks Consensus Estimate of a loss of 19 cents.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's Corporation price-consensus-eps-surprise-chart | Kohl's Corporation Quote
Total revenues were $3,575 million, down 3.6% from the prior-year quarter’s $3,710 million. However, the top line beat the Zacks Consensus Estimate of $3,486 million. The company’s net sales fell 2.8% to $3,407 million, while other revenues fell 17.2% to $168 million. We note that comparable sales dipped 1.7% year over year. We expected comparable sales to decrease 4.6%.
Kohl’s Quarterly Margin Highlights
Kohl's gross margin expanded 51 basis points (bps) to 39.6% in the reported quarter. We expected a gross margin decrease of 10 bps. SG&A expenses dropped 2.1% to $1,263 million. As a percentage of total revenues, SG&A expenses increased 55 bps to 35.3%. We anticipated SG&A expenses, as a percentage of net sales, to increase 60 bps.
KSS posted an adjusted operating income of $77 million, down from $98 million in the year-ago period. The operating income margin was 2.2%.
KSS’ Financial Health Snapshot & Other Updates
Kohl's ended the quarter with cash and cash equivalents of $144 million and shareholders’ equity of $3,930 million.
For the nine months of fiscal 2025 ending Nov. 1, 2025, net cash provided by operating activities was $630 million. Management expects capital expenditures of $400 million for fiscal 2025.
On Nov. 12, 2025, Kohl’s declared a quarterly cash dividend of 12.50 cents per share, payable Dec. 24, to its shareholders of record as of Dec. 10.
What to Expect From KSS in FY25?
For fiscal 2025, Kohl’s now expects net sales to decline 3.5-4%, an improvement from its prior forecast of a 5-6% drop. Comparable sales are projected to fall 2.5-3%, compared with the earlier outlook of a 4-5% decline.
The company now anticipates an adjusted operating margin of 3.1-3.2%, up from the previously projected range of 2.5-2.7%. Full-year EPS is now estimated at $1.25-$1.45, significantly higher than the earlier guidance of 50 cents to 80 cents.
This Zacks Rank #3 (Hold) company’s shares have gained 13.7% in the past three months compared with the industry’s growth of 24.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Ulta Beauty, Inc. ((ULTA - Free Report) ) operates as a specialty beauty retailer in the United States, Mexico and Kuwait. At present, Ulta Beauty carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The consensus estimate for Ulta Beauty’s current fiscal-year sales implies growth of 6.8%, from the year-ago figures. ULTA delivered a trailing four-quarter earnings surprise of 16.3%, on average.
Five Below, Inc. ((FIVE - Free Report) ) operates as a specialty value retailer in the United States. It has a Zacks Rank #2 at present. Five Below delivered a trailing four-quarter earnings surprise of 50.5%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings implies an increase of 16.2% and 1.2%, respectively, from the prior-year levels.
Ross Stores, Inc. ((ROST - Free Report) ), operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. It carries a Zacks Rank #2 at present. Ross Stores delivered a trailing four-quarter earnings surprise of 6.7%, on average.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year sales implies an increase of 4.9%, from the prior-year levels.