Kohl’s Co. (NYSE: KSS) Q4 Earnings: Commendable EPS but Disappointing Forward Guidance
Department store operator Kohl’s Co. (NYSE: KSS) reported its fiscal fourth quarter earnings for the year 2025, and the results were a mixed bag. The company managed to beat earnings-per-share (EPS) estimates, but the forward guidance left investors feeling disappointed, leading to a significant dip in the stock price.
Earnings Beat but Missed on Sales
Kohl’s reported EPS of $1.93, which was higher than the consensus estimate of $1.84. However, the company missed on sales, reporting a 0.3% decline year-over-year to $6.33 billion. The sales figure came in below the consensus estimate of $6.37 billion.
Disappointing Forward Guidance
Despite the EPS beat, investors were disappointed with the company’s outlook for the year ahead. Kohl’s provided guidance for EPS of $5.50 to $5.80 for the full year 2026, which was lower than the consensus estimate of $6.03. The company also projected sales to decline by 1% to grow by 1% for the year.
Impact on Kohl’s Stock Price
Following the earnings report, Kohl’s stock price took a hit, dropping by more than 10% in after-hours trading. The stock continued to decline in the following days, reaching new all-time lows. As of now, KSS is trading at around $30, down from its 52-week high of $55.
Impact on Consumers
The disappointing earnings report and guidance from Kohl’s could have a ripple effect on consumers. As a department store chain, Kohl’s sells a wide range of products, including clothing, home goods, and electronics. A decline in sales and profits for Kohl’s could mean fewer new products and promotions, which could impact consumer choice and satisfaction.
Impact on the Retail Industry
Kohl’s struggles come at a time when the retail industry is facing significant challenges. The rise of e-commerce and changing consumer preferences have forced traditional retailers to adapt or risk becoming obsolete. Kohl’s has been trying to transform its business model, focusing on omnichannel sales and expanding its product offerings. However, the company’s struggles could be a sign of broader challenges in the retail industry.
Conclusion
Kohl’s Co.’s fiscal fourth quarter earnings report was a reminder of the challenges facing the retail industry. While the company managed to beat earnings estimates, the disappointing forward guidance sent shockwaves through the market, leading to a significant drop in the stock price. The impact of Kohl’s struggles could be felt by consumers, who may see fewer new products and promotions, and by the retail industry as a whole, which is already grappling with changing consumer preferences and the rise of e-commerce.
- Kohl’s Co. reported fiscal fourth quarter earnings for the year 2025
- The company beat earnings-per-share (EPS) estimates but missed on sales
- Disappointing forward guidance led to a significant drop in the stock price
- Impact on consumers: fewer new products and promotions
- Impact on the retail industry: a sign of broader challenges
