Kohls | 8-K: FY2026 Q2 Revenue: USD 3.347 B

Revenue: As of FY2026 Q2, the actual value is USD 3.347 B.

EPS: As of FY2026 Q2, the actual value is USD 1.35, beating the estimate of USD 0.2979.

EBIT: As of FY2026 Q2, the actual value is USD 201 M.

Segment Revenue

• Net sales for the second quarter of fiscal 2025 decreased 5.1% year-over-year to $3.3 billion, with comparable sales down 4.2%.

Operational Metrics

• Gross margin as a percentage of net sales was 39.9%, an increase of 28 basis points.
• Selling, general & administrative (SG&A) expenses decreased 4.1% year-over-year to $1.2 billion, representing 33.8% of total revenue, an increase of 32 basis points year-over-year.
• Operating income was $279 million compared to $166 million in the prior year, with an operating margin of 7.9%, an increase of 343 basis points year-over-year.
• Net income was $153 million, or $1.35 per diluted share, compared to $66 million, or $0.59 per diluted share, in the prior year.

Cash Flow

• Operating cash flow was $598 million compared to $254 million in the prior year.
• Free cash flow was $306 million for the six months ended August 2, 2025, compared to $8 million for the same period in 2024.

Unique Metrics

• Inventory was $3.0 billion, a decrease of 5% year-over-year.
• Gain on legal settlement was $129 million from a credit card interchange fee lawsuit settlement.
• Adjusted Leverage Ratio was reduced to 2.6x from an unadjusted ratio of 4.4x, reflecting adjustments for actual lease periods exercised.

Outlook / Guidance

• Kohl’s raised its full-year 2025 financial outlook, expecting net sales to decrease by 5% to 6% and comparable sales to decrease by 4% to 5%.
• Adjusted operating margin is anticipated to be in the range of 2.5% to 2.7%, with adjusted diluted EPS between $0.50 and $0.80.
• Capital expenditures are projected to be approximately $400 million.