Kohl's Corporation (NYSE:KSS) faced a substantial decline of about 63.8% in its stock over the past year, showing a stark contrast to the broader market performance. In the first quarter of fiscal 2025, the company reported a net loss of $15 million, translating to $0.13 per share, slightly better than the $27 million loss it recorded during the same quarter last year.
While net sales fell by 4.1%, Kohl's managed a 37 basis point improvement in gross margin and cut SG&A expenses by 5.2%. The company has reaffirmed its full-year 2025 outlook, anticipating a net sales decline of 5–7% and diluted EPS ranging between $0.10 and $0.60. Moreover, Kohl’s declared a quarterly dividend of $0.125 per share, scheduled for payment on June 25, 2025.
#Why This Is Important for Retail Investors
Kohl’s reported a smaller loss than last year, indicating potential improvement.
The gradual increase in gross margin may signal operational efficiencies.
A reduction in SG&A expenses can hint at cost management strategies.
The reaffirmed guidance of a milder net sales decline invites cautious optimism.
The dividend payout offers a measure of income amidst stock volatility.
#About the Company
Kohl’s Corporation operates a chain of department stores across the United States, offering a wide range of consumer merchandise, including apparel, footwear, accessories, and home products. The company has emphasized strategic partnerships, such as its collaboration with Sephora, to enhance product offerings and maintain competitive pricing.
#Competitive Landscape
Kohl's competes in the retail sector with companies like Macy's Inc (NYSE:M), JCPenney, and Target Corporation (NYSE:TGT). The retail industry is highly competitive, with factors such as pricing, product assortment, and customer experience playing crucial roles in attracting and retaining customers. Kohl's strategic initiatives, including store layout changes and brand partnerships, aim to enhance its market position.
#Near-Term Catalysts and Risks
Kohl's near-term performance will be influenced by its ability to execute turnaround strategies, manage inventory effectively, and respond to consumer demand shifts. Risks include potential supply chain disruptions, changing consumer preferences, and macroeconomic factors affecting discretionary spending. The company's leadership changes add an element of uncertainty to its strategic execution.
#Trading KSS Stock
For retail investors considering KSS stock, it's helpful to weigh the company's turnaround potential against the risks associated with its recent performance and industry challenges. Monitoring upcoming earnings reports, management commentary, and market trends will be a good guide in making informed investment decisions.
#FAQ
What is the current price of KSS stock?
As of June 5, 2025, KSS is trading at $8.13 per share.
Does Kohl's pay a dividend?
Yes, Kohl's has declared a quarterly dividend of $0.125 per share, payable on June 25, 2025.
What is Kohl's full-year 2025 outlook?
The company expects a 5–7% decline in net sales and diluted EPS between $0.10 and $0.60 for fiscal 2025.
Who is the current CEO of Kohl's?
Michael Bender is serving as the interim CEO following recent leadership changes.
What are the key risks for Kohl's investors?
Key risks include the execution of turnaround strategies, competitive pressures, and macroeconomic factors affecting consumer spending.