Kohl’s (KSS) Stock Plunges 9% on Disappointing Holiday Results and Bleak Forecast

Key Takeaways

• Q4 net sales declined 3.9% year-over-year to $4.97 billion, falling short of the $5.02–$5.03 billion consensus forecast
• Comparable sales decreased 2.8%, significantly worse than the anticipated 1.5% drop
• Adjusted earnings per share of $1.07 exceeded the 86-cent consensus, though revenue weakness dominated investor sentiment
• Management’s full-year outlook projects comparable sales between down 2% and flat, trailing Wall Street expectations
• Store traffic at Kohl’s declined 5% during Q4, contrasting sharply with Ross Stores’ 11.9% increase

Shares of Kohl’s experienced a sharp decline of up to 9% during premarket hours on Tuesday following the department store chain’s disappointing holiday-quarter performance and conservative forward guidance. Year-to-date in 2026, the stock has now retreated approximately 28%.

Revenue for the fourth quarter reached $4.97 billion, representing a 3.9% year-over-year contraction and missing analyst projections of $5.02–$5.03 billion. Comparable sales slid 2.8% — significantly steeper than the 1.5% decline Wall Street had anticipated.

Kohl’s Corporation, KSS

On the earnings front, there was a silver lining. Adjusted earnings per share registered at $1.07, surpassing the Street’s 86-cent estimate. However, investors appeared unimpressed amid broader revenue concerns.

Michael Bender, who assumed the permanent CEO position in November, conceded that quarterly results fell short of internal targets. “We are ending 2025 in a stronger position than we started, with important work still ahead of us,” he stated in the company’s release.

Bender characterized the organization as undergoing a “foundation reset,” language that suggests an extended transformation period rather than an immediate turnaround.

Another Year of Comparable Sales Contraction Looms

The annual forecast provided little optimism for shareholders. Kohl’s projected comparable net sales ranging from flat to down 2% for the current fiscal period. The Street had been modeling a more modest 0.7% contraction.

Adjusted EPS guidance of $1.00 to $1.60 establishes a midpoint of $1.30 — trailing the consensus estimate of $1.39. The unusually wide range hints at management’s own uncertainty about execution.

Should comparable sales contract once more, it would represent the fifth consecutive fiscal year of same-store sales declines for the struggling retailer.

Third-party foot traffic analytics from Placer.ai paint a concerning picture. Throughout the October-December quarter, visits to Kohl’s locations fell 5%. During that identical timeframe, Ross Stores experienced an 11.9% surge in store traffic.

The Competitive Pressure Intensifies

Kohl’s has been steadily ceding market share to Amazon and discount-focused competitors across multiple quarters. Weakened consumer discretionary spending in the U.S. has compounded these challenges, while internal merchandising missteps have further dampened customer interest.

The company has also experienced considerable executive instability in recent years. Bender’s November appointment was designed to restore consistency and strategic clarity to the transformation initiative.

Despite current struggles, KSS delivered impressive returns over the trailing twelve months — climbing approximately 62% after gaining temporary attention as a meme stock last summer and delivering better-than-expected earnings in November.

Shares have declined 27–28% thus far in 2026.

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