Kohl's profits jump, but traffic troubles persist
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Kohl's reported its quarterly earnings on March 10, 2026. Photo: Kelly Tyko/Axios
Kohl's said Tuesday its sales decline isn't easing — and management's own forecast suggests the comeback won't arrive this year.
Why it matters: This wasn't just a weak holiday quarter — it signals Kohl's turnaround plan still isn't resonating with shoppers.
- "Our issue continues to be traffic," CFO Jill Timm said on a conference call discussing fourth quarter earnings.
- CEO Michael Bender acknowledged the retailer "lost some competitive ground" during key holiday shopping windows, including Black Friday and Cyber Monday.
By the numbers: Net sales for the three months through Jan. 31 fell 3.9% to $5 billion, with comparable sales down 2.8%.
- Full-year sales dropped 4% to $14.8 billion.
Yes, but: Kohl's behind-the-scenes work, like tighter inventory and expense control, helped boost profits to $125 million in the quarter — even as sales fell.
- Q4 earnings rose to $1.07 per share, up from $0.43 a year earlier.
The intrigue: Kohl's stock swung wildly after the report — down 3% at the open, then up more than 14% before settling to a small gain by early afternoon.
What they're saying: Analysts argue Kohl's underlying problem remains relevance and value perception.
- Neil Saunders, managing director of GlobalData, called the performance "one of the weakest in mainstream retail," noting sales are down nearly 24% since 2019, even with the boost from Sephora shop-in-shops.
What's next: Kohl's expects 2026 sales to range from down 2% to flat. The retailer is leaning harder into value — expanding proprietary brands, sharpening opening price points and rolling out more under-$10 impulse items — as it tries to drive traffic back into stores.
- Executives said sales should build through the year, though Bender cautioned, "It's not going to be a straight line."
- The CEO also said there are no plans for broad store closures, with more than 90% of Kohl's roughly 1,150 locations profitable.
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