For the 13-week period ended May 2, 2026, net sales fell 1.7 per cent year on year (YoY) to $3 billion, while comparable sales declined 1.1 per cent. Total revenue decreased to $3.17 billion from $3.23 billion in the corresponding quarter last year.
Kohl’s has reported a narrower net loss of $14 million in Q1 FY26 despite a 1.7 per cent decline in net sales to $3 billion.
Comparable sales fell 1.1 per cent, while gross margin remained stable at 39.9 per cent.
Inventory dropped 8 per cent YoY and revolving credit borrowings were eliminated.
The company reaffirmed its full-year FY26 outlook and maintained its capital expenditure guidance.
Michael Bender, Kohl’s CEO officer, said: “We are pleased with our start to 2026. Our key initiatives continue to drive progressive improvements to the business, resulting in our best comparable sales performance in over four years. In addition, we continue to manage the business with great discipline leading to strong expense management, cleaner inventories, and an improved balance sheet.”
Gross margin remains stable in Q1 FY26
The gross margin remained stable at 39.9 per cent of net sales, improving marginally by 4 basis points from the prior-year period. Selling, general and administrative (SG&A) expenses declined 1.6 per cent YoY to $1.1 billion, although as a share of total revenue, SG&A expenses rose 15 basis points to 36.2 per cent.
The operating income stood at $46 million compared to $60 million a year earlier, while operating margin declined to 1.4 per cent from 1.9 per cent. Net loss narrowed slightly to $14 million, or $0.13 per diluted share, compared to a loss of $15 million, or $0.13 per diluted share, in the prior-year quarter, Kohl’s said in a press release.
“Moving forward, we remain committed to delivering more value and a better experience to our customers. I would like to extend my sincere gratitude to all of our Kohl’s associates for their dedication and determination to execute against our initiatives,” added Bender.
Cash and cash equivalents rose significantly to $429 million from $153 million. Operating cash flow remained negative at $74 million during the quarter.
Kohl’s maintains sales and margin guidance for FY26
Kohl’s reaffirmed its financial outlook for fiscal 2026, expecting net sales and comparable sales to range from a decline of 2 per cent to flat growth. The company continues to project adjusted operating margin between 2.8 per cent and 3.4 per cent and adjusted diluted earnings per share between $1 and $1.6.
Capital expenditure for the year is expected to be between $350 million and $400 million.
Fibre2Fashion News Desk (SG)
