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Kohl's Private Brands Rise 6%: Can Value Drive More Traffic?
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Key Takeaways
Kohl's proprietary brands posted a 6% comparable sales increase in first-quarter fiscal 2026.
Juniors sales rose 10%, led by SO, with LC Lauren Conrad, Sonoma, FLX and Tek Gear contributing.
Kohl's plans more proprietary-brand inventory, in-store presentation and By Kohl's marketing support.
Kohl’s Corporation (KSS - Free Report) is leaning more on its proprietary brands to strengthen value for budget-conscious shoppers. With consumers being selective on discretionary spending, the retailer is using exclusive labels to offer quality products at affordable opening price points. The strategy gained traction in first-quarter fiscal 2026, as proprietary brands delivered a 6% comparable-sales increase.
The performance was broad-based across key apparel categories and represented one of the brighter areas of the business during the quarter. Juniors led the way with a 10% sales increase, driven by strength in the SO brand. Other proprietary labels, including LC Lauren Conrad, Sonoma, FLX and Tek Gear, also contributed to results across multiple categories.
Private brands remain central to Kohl’s value-focused merchandising approach. Unlike national brands, these labels are exclusive to Kohl’s, allowing the company to offer customers a combination of affordability and differentiation. To build on the momentum, KSS plans to increase inventory investments in proprietary brands while enhancing in-store presentation and expanding awareness through its By Kohl’s marketing campaign.
The company is also strengthening its value message through initiatives such as Deal Bar and Toy Tower, which feature seasonal, gifting and toy products at price points below $10. Both concepts performed better than initially expected during the quarter.
The 6% comparable sales increase in proprietary brands underscores the growing role of Kohl’s exclusive labels within its value strategy. As the company expands inventory support, marketing efforts and in-store visibility for these brands, private labels are becoming an increasingly important part of delivering affordable products and reinforcing KSS’ value proposition across its merchandise assortment.
WMT and TGT Also Lean on Value and Exclusive Assortments
Walmart Inc. (WMT - Free Report) is also using value and private brands to support customer engagement. In first-quarter fiscal 2027, the company reported 4.1% comparable sales growth in Walmart U.S., backed by a 3% increase in transactions. In general merchandise, WMT’s private-brand sales rose double digits, while private-brand mix expanded 175 basis points. Walmart also had about 7,200 rollbacks across its assortment, reinforcing its value message.
Target Corporation (TGT - Free Report) is taking a similar value-led approach through affordable, trend-right assortments. In first-quarter 2026, TGT posted 5.6% comparable sales growth, driven partly by a 4.4% increase in comparable traffic. The company cited strength in toys, where new offerings priced at $20 or less helped deliver double-digit comparable growth. For Target, value-focused assortments remain key to driving guest engagement.
Shares of Kohl’s have surged 94.1% over the past year compared with the industry’s growth of 73.6%.
KSS Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, KSS trades at a forward price-to-earnings ratio of 13.7, lower than the industry’s average of 14.41.
KSS’ Valuation Compared to Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KSS’ current fiscal-year earnings per share implies a year-over-year decline of almost 21%, while the consensus mark for the next fiscal year’s EPS suggests growth of 9.1%.
View the Zacks #1 Rank List
Image: Bigstock
Kohl's Private Brands Rise 6%: Can Value Drive More Traffic?
Key Takeaways
Kohl’s Corporation (KSS - Free Report) is leaning more on its proprietary brands to strengthen value for budget-conscious shoppers. With consumers being selective on discretionary spending, the retailer is using exclusive labels to offer quality products at affordable opening price points. The strategy gained traction in first-quarter fiscal 2026, as proprietary brands delivered a 6% comparable-sales increase.
The performance was broad-based across key apparel categories and represented one of the brighter areas of the business during the quarter. Juniors led the way with a 10% sales increase, driven by strength in the SO brand. Other proprietary labels, including LC Lauren Conrad, Sonoma, FLX and Tek Gear, also contributed to results across multiple categories.
Private brands remain central to Kohl’s value-focused merchandising approach. Unlike national brands, these labels are exclusive to Kohl’s, allowing the company to offer customers a combination of affordability and differentiation. To build on the momentum, KSS plans to increase inventory investments in proprietary brands while enhancing in-store presentation and expanding awareness through its By Kohl’s marketing campaign.
The company is also strengthening its value message through initiatives such as Deal Bar and Toy Tower, which feature seasonal, gifting and toy products at price points below $10. Both concepts performed better than initially expected during the quarter.
The 6% comparable sales increase in proprietary brands underscores the growing role of Kohl’s exclusive labels within its value strategy. As the company expands inventory support, marketing efforts and in-store visibility for these brands, private labels are becoming an increasingly important part of delivering affordable products and reinforcing KSS’ value proposition across its merchandise assortment.
WMT and TGT Also Lean on Value and Exclusive Assortments
Walmart Inc. (WMT - Free Report) is also using value and private brands to support customer engagement. In first-quarter fiscal 2027, the company reported 4.1% comparable sales growth in Walmart U.S., backed by a 3% increase in transactions. In general merchandise, WMT’s private-brand sales rose double digits, while private-brand mix expanded 175 basis points. Walmart also had about 7,200 rollbacks across its assortment, reinforcing its value message.
Target Corporation (TGT - Free Report) is taking a similar value-led approach through affordable, trend-right assortments. In first-quarter 2026, TGT posted 5.6% comparable sales growth, driven partly by a 4.4% increase in comparable traffic. The company cited strength in toys, where new offerings priced at $20 or less helped deliver double-digit comparable growth. For Target, value-focused assortments remain key to driving guest engagement.
KSS Stock Price Performance, Valuation & Estimates
Shares of Kohl’s have surged 94.1% over the past year compared with the industry’s growth of 73.6%.
KSS Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, KSS trades at a forward price-to-earnings ratio of 13.7, lower than the industry’s average of 14.41.
KSS’ Valuation Compared to Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KSS’ current fiscal-year earnings per share implies a year-over-year decline of almost 21%, while the consensus mark for the next fiscal year’s EPS suggests growth of 9.1%.
Kohl’s currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.