Kohl's Q1 sales down, but profitability metrics improve

Kohl's first quarter results for the 13-week period ended May 3, 2025, show a narrowed net loss despite a decrease in sales. The retailer reported net sales of 3 billion dollars, down 4.1 percent year-over-year, with comparable sales also declining by 3.9 percent.

Michael Bender, Kohl’s interim CEO, said, “Our first quarter performance was ahead of our expectations and the actions we are taking are starting to make progress with early signs of a positive impact. I am excited to lead this next chapter of Kohl’s and build on the momentum we have begun to generate.”

However, the company saw improvements in profitability metrics, with gross margin increasing by 37 basis points to 39.9 percent of net sales. Operating income rose to 60 million dollars from 43 million dollars in the prior year, representing 1.9 percent of total revenue, an increase of 58 basis points.

Consequently, the net loss for the quarter narrowed to 15 million dollars, or loss of 13 cents per diluted share, compared to a net loss of 27 million dollars or 24 cents per diluted share, in the same period last year.

Looking ahead, Kohl's reaffirmed its full-year 2025 financial outlook. The company continues to expect net sales to decrease by 5 percent to 7 percent, with comparable sales anticipated to decline by 4 percent to 6 percent. Operating margin is projected to be in the range of 2.2 percent to 2.6 percent, and diluted EPS is expected between 10 cents and 60 cents.

Kohl's plans for capital expenditures between 400 million dollars and 425 million dollars. The company also announced a quarterly cash dividend of 0.125 cents per share, payable on June 25, 2025, to shareholders of record as of June 11, 2025.