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Kohl's Set to Release Q1 Earnings: Key Insights for Investors
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Key Takeaways
Kohl's Q1 revenues are expected to fall 2.2% year over year to nearly $3.16 billion.
KSS faces pressure from weak discretionary demand, promotions and higher digital fulfillment costs.
Kohl's sees support from proprietary brands, curated assortments and improved inventory flow.
Kohl's Corporation (KSS - Free Report) is likely to witness top and bottom-line declines when it reports first-quarter fiscal 2026 earnings on May 28. The Zacks Consensus Estimate for revenues is pegged at $3.16 billion, indicating a 2.2% decrease from the prior-year quarter’s reported figure.
The consensus mark for loss per share has remained unchanged in the past 30 days at 18 cents, indicating a drop of 38.5% from the figure recorded in the year-ago quarter. KSS has a trailing four-quarter earnings surprise of 72.3%, on average.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl’s has been navigating a difficult consumer backdrop, particularly among its core middle and lower-income shoppers, who remain pressured by inflationary and macroeconomic uncertainties. Discretionary spending remains tight and customers are increasingly value-focused and selective, which is likely to have weighed on overall sales in the quarter under review. Reflecting these challenges, the company guided for first-quarter comparable sales to decline in the low-single-digit range.
Execution-related challenges and category-specific softness are also expected to have remained a drag on first-quarter performance. Kohl’s previously cited inventory allocation issues and weak seasonal decor demand as key factors behind fourth-quarter underperformance. Although the company has been taking steps to improve inventory depth, replenishment and assortment clarity, these initiatives likely required time to meaningfully benefit sales trends during the quarter.
Margins in the quarter are likely to have faced pressure from elevated promotional activity and higher digital penetration. Kohl’s has been increasing value-oriented offers and coupon eligibility to drive customer engagement in a highly competitive retail environment. At the same time, higher digital sales penetration continues to raise fulfillment and shipping expenses. We expect gross profit to decline 1.8% year over year and gross margin to be flat at 39.8% for the first quarter.
Despite these headwinds, Kohl’s has shown encouraging momentum across several strategic initiatives entering fiscal 2026. On its last earnings call, management noted that spring seasonal categories and year-round businesses started strong, aided by improved inventory flow, better in-stock levels and a more curated assortment strategy. The company is also benefiting from growing traction in proprietary brands, supported by initiatives such as the “By Kohl’s” campaign, enhanced in-store presentations and investments in opening-price-point merchandise aimed at value-conscious consumers. These efforts, along with disciplined inventory management, are expected to have provided some support to first-quarter performance.
Earnings Whispers for KSS Stock
Our proven model doesn’t conclusively predict an earnings beat for Kohl's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Kohl's currently carries a Zacks Rank #1 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for Burlington's upcoming quarter’s earnings per share is pegged at $1.77, which implies 10.6% growth year over year. The consensus estimate for the quarterly revenues is pinned at $2.8 billion, which indicates 12% growth from the figure reported in the prior-year quarter. BURL delivered a trailing four-quarter earnings surprise of 13.8%, on average.
Five Below, Inc. (FIVE - Free Report) currently has an Earnings ESP of +13.95% and a Zacks Rank #2. The consensus estimate for quarterly revenues is pegged at $1.2 billion, which indicates an increase of 23.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Five Below’s upcoming quarter’s earnings per share is pegged at $1.66, implying 93% year-over-year growth. FIVE delivered a trailing four-quarter earnings surprise of 63.4%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.95% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $69.50 billion, indicating a 10% rise from the figure reported in the prior-year quarter.
The consensus estimate for Costco’s earnings is pegged at $4.91 per share, implying 14.7% growth from the year-ago quarter. COST delivered a trailing four-quarter earnings surprise of 1.1%, on average.
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Kohl's Set to Release Q1 Earnings: Key Insights for Investors
Key Takeaways
Kohl's Corporation (KSS - Free Report) is likely to witness top and bottom-line declines when it reports first-quarter fiscal 2026 earnings on May 28. The Zacks Consensus Estimate for revenues is pegged at $3.16 billion, indicating a 2.2% decrease from the prior-year quarter’s reported figure.
The consensus mark for loss per share has remained unchanged in the past 30 days at 18 cents, indicating a drop of 38.5% from the figure recorded in the year-ago quarter. KSS has a trailing four-quarter earnings surprise of 72.3%, on average.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's Corporation price-consensus-eps-surprise-chart | Kohl's Corporation Quote
Factors Likely to Influence KSS’ Q1 Results
Kohl’s has been navigating a difficult consumer backdrop, particularly among its core middle and lower-income shoppers, who remain pressured by inflationary and macroeconomic uncertainties. Discretionary spending remains tight and customers are increasingly value-focused and selective, which is likely to have weighed on overall sales in the quarter under review. Reflecting these challenges, the company guided for first-quarter comparable sales to decline in the low-single-digit range.
Execution-related challenges and category-specific softness are also expected to have remained a drag on first-quarter performance. Kohl’s previously cited inventory allocation issues and weak seasonal decor demand as key factors behind fourth-quarter underperformance. Although the company has been taking steps to improve inventory depth, replenishment and assortment clarity, these initiatives likely required time to meaningfully benefit sales trends during the quarter.
Margins in the quarter are likely to have faced pressure from elevated promotional activity and higher digital penetration. Kohl’s has been increasing value-oriented offers and coupon eligibility to drive customer engagement in a highly competitive retail environment. At the same time, higher digital sales penetration continues to raise fulfillment and shipping expenses. We expect gross profit to decline 1.8% year over year and gross margin to be flat at 39.8% for the first quarter.
Despite these headwinds, Kohl’s has shown encouraging momentum across several strategic initiatives entering fiscal 2026. On its last earnings call, management noted that spring seasonal categories and year-round businesses started strong, aided by improved inventory flow, better in-stock levels and a more curated assortment strategy. The company is also benefiting from growing traction in proprietary brands, supported by initiatives such as the “By Kohl’s” campaign, enhanced in-store presentations and investments in opening-price-point merchandise aimed at value-conscious consumers. These efforts, along with disciplined inventory management, are expected to have provided some support to first-quarter performance.
Earnings Whispers for KSS Stock
Our proven model doesn’t conclusively predict an earnings beat for Kohl's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Kohl's currently carries a Zacks Rank #1 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Burlington Stores, Inc. (BURL - Free Report) currently has an Earnings ESP of +6.34% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Burlington's upcoming quarter’s earnings per share is pegged at $1.77, which implies 10.6% growth year over year. The consensus estimate for the quarterly revenues is pinned at $2.8 billion, which indicates 12% growth from the figure reported in the prior-year quarter. BURL delivered a trailing four-quarter earnings surprise of 13.8%, on average.
Five Below, Inc. (FIVE - Free Report) currently has an Earnings ESP of +13.95% and a Zacks Rank #2. The consensus estimate for quarterly revenues is pegged at $1.2 billion, which indicates an increase of 23.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Five Below’s upcoming quarter’s earnings per share is pegged at $1.66, implying 93% year-over-year growth. FIVE delivered a trailing four-quarter earnings surprise of 63.4%, on average.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.95% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $69.50 billion, indicating a 10% rise from the figure reported in the prior-year quarter.
The consensus estimate for Costco’s earnings is pegged at $4.91 per share, implying 14.7% growth from the year-ago quarter. COST delivered a trailing four-quarter earnings surprise of 1.1%, on average.