Menomonee Falls, Wis. – Kohl’s hasn’t returned to top-line growth just yet, but it appears to have staunched the bleeding.
Total net sales declined 1.7% to $3 billion during the quarter ended May 2. Comp sales were down 1.1% – but that marked the retailer’s best comp performance in more than four years.
Net loss narrowed slightly to $14 million, or a $0.13 loss per diluted share vs. a net loss of $15 million, or $0.13 loss per diluted share in the prior-year quarter.
Here are 5 takeaways behind those numbers:
Home over-performs: After a misfire in the fourth quarter, the home segment over-performed during Q1, generating a slightly positive comp. New products from Ninja and Shark showed particular strength. In soft home and tabletop, Kohl’s is putting more emphasis on its private label Miryana and Mingle & Co. brands, which launched in spring 2025. Home decor was another bright spot, comping up in the low single digits thanks to a new approach to seasonal goods that prioritizes a broader assortment rather than a deeper assortment.
Other winning categories: Women’s, kids and accessories also delivered slightly positive comps. Within the kids business, Kohl’s sees more room to run and plans to add Babies R Us shops to 56 more stores this fall.
A shocking lapse: Even during the worst of times at Kohl’s, its in-store Sephora business has always bucked the downward trend. During Q1, however, Sephora comped down in the low single digits. The company is now rolling out better makeup brands such as MAC and introducing more Korean skin care offerings to turn things around.
Wooing back the core customer: Visits from the retailer’s coupon-loving, core Kohl’s card customers had been in decline for several quarters. Although spending by this group was flat in Q1, that marked a 600 basis point improvement over Q4. “We’ll continue to double down on making sure that we continue to attract that customer back to the business,” said CEO Michael Bender. “We didn’t lose that customer; we lost a bit of their wallet share.”
Private label and opening price points: Kohl’s is amping up and expanding its private label brands as a vehicle for introducing more opening price points across the store. “We serve a middle- to lower-income consumer,” said CFO Jill Timm. “We’ve been void of opening price points for past two years.”
Looking ahead, Kohl’s reiterated its outlook for the full fiscal year: net sales and comps between flat and a 2% decline, with adjusted earnings per share in a range from $1.00 and $1.60.
