Key Takeaways
- Q4 revenue declined 3.9% year-over-year to $4.97 billion, falling short of Wall Street’s $5.02–$5.03 billion projection
- Same-store sales decreased 2.8%, significantly worse than the anticipated 1.5% drop
- While adjusted earnings per share of $1.07 exceeded the 86-cent forecast, weak revenue dominated investor sentiment
- Fiscal year outlook projects comparable sales ranging from flat to down 2%, disappointing market expectations
- Store visits declined 5% during Q4, contrasting sharply with Ross Stores’ 11.9% traffic increase
Shares of Kohl’s experienced a sharp decline of up to 9% during premarket hours Tuesday following the department store chain’s announcement of underwhelming holiday season results and a conservative forecast for the coming fiscal year. Year-to-date in 2026, the stock has shed approximately 28% of its value.
The company’s fourth-quarter revenue totaled $4.97 billion, representing a 3.9% year-over-year decrease and missing analyst projections of $5.02–$5.03 billion. Same-store sales contracted 2.8% — a decline almost double the 1.5% decrease Wall Street anticipated.
The sole positive indicator came from the bottom line. Adjusted earnings per share reached $1.07, surpassing the consensus projection of 86 cents. However, investors remained unimpressed by the revenue shortfall.
Michael Bender, who assumed the permanent CEO position in November, conceded that quarterly performance fell below internal projections. “We are ending 2025 in a stronger position than we started, with important work still ahead of us,” he stated officially.
Bender characterized the organization as “resetting its foundation,” language indicating extended restructuring efforts rather than an imminent recovery.
Fifth Consecutive Year of Declining Comparable Sales Looms
The company’s forward guidance offered little optimism for shareholders. Kohl’s projected comparable net sales would range from flat to a 2% decline for the current fiscal period. Wall Street had anticipated only a 0.7% contraction.
The adjusted earnings per share forecast of $1.00 to $1.60 establishes a midpoint of $1.30 — falling below the $1.39 analyst consensus. The breadth of this range reflects considerable uncertainty among leadership.
Should comparable sales decline materialize, the department store would face its fifth consecutive year of same-store sales contraction.
Visitor data compiled by Placer.ai highlights the magnitude of the retailer’s challenges. Throughout the October-December quarter, physical store traffic fell 5%. During the identical timeframe, Ross Stores experienced an 11.9% surge in customer visits.
Customer Migration to Competitors Accelerates
Amazon and discount retailers have steadily captured market share from Kohl’s across multiple quarters. Subdued consumer discretionary spending throughout the United States has compounded these difficulties, while persistent merchandising missteps have further dampened customer demand.
The organization has also endured substantial executive turnover in recent years. Bender’s November appointment aimed to establish continuity and strategic direction for the ongoing transformation initiative.
Despite year-to-date weakness, KSS shares appreciated roughly 62% over the trailing twelve months — benefiting from brief viral attention as a meme stock last summer and an earnings surprise in November.
The stock has declined 27–28% since the start of 2026.
