Operating margins remain thin and highly sensitive to seasonal demand, fluctuating between 1.3% and 5.0% over the last ten quarters as revenue growth continues to trend negatively.
| Metric | TTM | Jan'26 | Feb'25 | Feb'24 | Jan'23 | Jan'22 | Jan'21 | Feb'20 | Feb'19 | Feb'18 | Jan'17 | Jan'16 | Jan'15 | Feb'14 | Feb'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Feb'08 | Feb'07 | Jan'06 | Jan'05 | Jan'04 | Feb'03 | Feb'02 | Feb'01 | Jan'00 | Jan'99 | Jan'98 | Feb'97 |
|---|
| Sales/Revenue | 15.46B | 15.53B | 16.22B | 17.48B | 18.1B | 19.43B | 15.96B | 19.97B | 20.23B | 20.08B | 19.68B | 19.2B | 19.02B | 19.03B | 19.28B | 18.8B | 18.39B | 17.18B | 16.39B | 16.47B | 15.6B | 13.44B | 11.7B | 10.28B | 9.12B | 7.49B | 6.15B | 4.56B | 3.68B | 3.06B | 2.39B |
| Revenue Growth % | -3.8% | -4.28% | -7.18% | -3.44% | -6.87% | 21.8% | -20.12% | -1.26% | 0.72% | 2.05% | 2.48% | 0.95% | -0.04% | -1.29% | 2.53% | 2.25% | 7.06% | 4.81% | -0.52% | 5.62% | 16.01% | 14.9% | 13.8% | 12.74% | 21.79% | 21.73% | 35% | 23.78% | 20.32% | 28.13% | 24.02% |
| Cost of Goods Sold | 9.37B | 9.23B | 9.66B | 10.5B | 11.46B | 11.44B | 10.36B | 12.14B | 12.2B | 12.18B | 11.94B | 12.27B | 12.1B | 12.09B | 12.29B | 11.63B | 11.36B | 10.68B | 10.33B | 10.46B | 9.92B | 8.66B | 7.59B | 6.89B | 5.98B | 4.92B | 4.05B | 3.01B | 2.45B | 2.05B | 1.61B |
| COGS % of Revenue | - | 59.43% | 59.56% | 60.07% | 63.31% | 58.85% | 64.93% | 60.78% | 60.3% | 60.63% | 60.69% | 63.87% | 63.6% | 63.51% | 63.74% | 61.82% | 61.76% | 62.17% | 63.05% | 63.49% | 63.62% | 64.44% | 64.84% | 66.98% | 65.58% | 65.75% | 65.83% | 66.13% | 66.47% | 66.87% | 67.36% |
| Gross Profit | 6.09B | 6.3B | 6.56B | 6.98B | 6.64B | 8B | 5.59B | 7.83B | 8.03B | 7.91B | 7.74B | 6.94B | 6.92B | 6.94B | 6.99B | 7.18B | 7.03B | 6.5B | 6.05B | 6.01B | 5.67B | 4.78B | 4.11B | 3.4B | 3.14B | 2.57B | 2.1B | 1.54B | 1.23B | 1.01B | 779.5M |
| Gross Margin % | 39.4% | 40.57% | 40.44% | 39.93% | 36.69% | 41.15% | 35.07% | 39.22% | 39.7% | 39.37% | 39.31% | 36.13% | 36.4% | 36.49% | 36.26% | 38.18% | 38.24% | 37.83% | 36.95% | 36.51% | 36.38% | 35.56% | 35.16% | 33.02% | 34.42% | 34.25% | 34.17% | 33.87% | 33.53% | 33.13% | 32.64% |
| Gross Profit Growth % | - | -3.98% | -5.99% | 5.07% | -16.95% | 42.91% | -28.58% | -2.44% | 1.54% | 2.21% | 11.5% | 0.2% | -0.27% | -0.66% | -2.63% | 2.09% | 8.22% | 7.32% | 0.68% | 5.98% | 18.71% | 16.21% | 21.16% | 8.16% | 22.37% | 22.02% | 36.21% | 25% | 21.77% | 30.08% | 23.53% |
| Operating Expenses | 5.59B | 5.79B | 6.05B | 6.26B | 6.39B | 6.32B | 5.86B | 6.74B | 6.67B | 6.49B | 6.55B | 5.39B | 5.24B | 5.2B | 5.1B | 5.02B | 4.94B | 6.5B | 6.05B | 6.01B | 5.67B | 4.78B | 4.11B | 3.4B | 3.14B | 2.57B | 2.1B | 1.54B | 1.23B | 1.01B | 779.5M |
| OpEx % of Revenue | - | 37.28% | 37.3% | 35.83% | 35.34% | 32.5% | 36.71% | 33.72% | 32.97% | 32.32% | 33.3% | 28.05% | 27.52% | 27.33% | 26.45% | 26.7% | 26.86% | 37.83% | 36.95% | 36.51% | 36.38% | 35.56% | 35.16% | 33.02% | 34.42% | 34.25% | 34.17% | 33.87% | 33.53% | 33.13% | 32.64% |
| Selling, General & Admin | 5.07B | 5.09B | 5.31B | 5.51B | 5.59B | 5.48B | 5.02B | 5.71B | 5.6B | 5.5B | 5.43B | 4.45B | 4.35B | 4.31B | 4.27B | 4.24B | 4.19B | 3.95B | 3.98B | 3.76B | 3.47B | 3.03B | 2.63B | 2.15B | 1.87B | 1.56B | 1.32B | 1.01B | 826.55M | 697.38M | 546.5M |
| SG&A % of Revenue | - | 32.78% | 32.72% | 31.54% | 30.87% | 28.19% | 31.47% | 28.56% | 27.69% | 27.39% | 27.59% | 23.18% | 22.87% | 22.66% | 22.13% | 22.56% | 22.78% | 23% | 24.27% | 22.81% | 22.26% | 22.5% | 22.5% | 20.9% | 20.48% | 20.8% | 21.42% | 22.08% | 22.45% | 22.79% | 22.88% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 700M | 743M | 749M | 808M | 838M | 836M | 1.03B | 1.07B | 991M | 1.12B | 934M | 886M | 889M | 833M | 778M | 750M | 2.55B | 2.08B | 2.26B | 2.2B | 1.76B | 1.48B | 1.25B | 1.27B | 1.01B | 784.59M | 537.11M | 408.11M | 316.56M | 233M |
| Operating Income | 496M | 510M | 509M | 717M | 246M | 1.68B | -262M | 1.1B | 1.36B | 1.42B | 1.18B | 1.55B | 1.69B | 1.74B | 1.89B | 2.16B | 2.09B | 1.86B | 1.54B | 1.8B | 1.81B | 1.42B | 1.19B | 1.01B | 1.08B | 849.98M | 651.32M | 448.27M | 337.86M | 258.83M | 188.8M |
| Operating Margin % | 3.21% | 3.28% | 3.14% | 4.1% | 1.36% | 8.65% | -1.64% | 5.5% | 6.73% | 7.05% | 6.01% | 8.09% | 8.88% | 9.15% | 9.8% | 11.48% | 11.38% | 10.82% | 9.37% | 10.95% | 11.64% | 10.53% | 10.2% | 9.79% | 11.82% | 11.35% | 10.59% | 9.84% | 9.18% | 8.46% | 7.91% |
| Operating Income Growth % | - | 0.2% | -29.01% | 191.46% | -85.36% | 741.22% | -123.84% | -19.25% | -3.88% | 19.7% | -23.82% | -8.05% | -3.04% | -7.83% | -12.42% | 3.15% | 12.53% | 21.03% | -14.86% | -0.6% | 28.15% | 18.68% | 18.53% | -6.58% | 26.79% | 30.5% | 45.29% | 32.68% | 30.53% | 37.09% | 26.03% |
| EBITDA | 1.2B | 1.21B | 1.25B | 1.47B | 1.05B | 2.52B | 612M | 2.02B | 2.33B | 2.41B | 2.12B | 2.49B | 2.58B | 2.63B | 2.72B | 2.94B | 2.84B | 2.55B | 2.08B | 2.26B | 2.2B | 1.76B | 1.48B | 1.26B | 1.28B | 1.02B | 784.59M | 537.11M | 408.11M | 316.56M | 233M |
| EBITDA Margin % | 7.73% | 7.79% | 7.72% | 8.39% | 5.82% | 12.96% | 3.84% | 10.09% | 11.49% | 11.98% | 10.78% | 12.95% | 13.54% | 13.82% | 14.12% | 15.61% | 15.45% | 14.83% | 12.69% | 13.7% | 14.13% | 13.06% | 12.67% | 12.22% | 14.05% | 13.58% | 12.75% | 11.79% | 11.08% | 10.34% | 9.76% |
| EBITDA Growth % | -4.86% | -3.35% | -14.6% | 39.09% | -58.14% | 311.44% | -69.64% | -13.29% | -3.41% | 13.48% | -14.72% | -3.42% | -2.13% | -3.38% | -7.25% | 3.31% | 11.58% | 22.51% | -7.89% | 2.44% | 25.47% | 18.45% | 17.94% | -1.92% | 26.01% | 29.63% | 46.08% | 31.61% | 28.92% | 35.86% | 26.77% |
| D&A (Non-Cash Add-back) | 699M | 700M | 743M | 749M | 808M | 838M | 874M | 917M | 964M | 991M | 938M | 934M | 886M | 889M | 833M | 778M | 750M | 688M | 543M | 453M | 388.51M | 339.83M | 289.11M | 250.17M | 203.85M | 167.05M | 133.27M | 88.84M | 70.25M | 57.72M | 44.2M |
| EBIT | 610M | 624M | 433M | 717M | 246M | 1.48B | -262M | 1.11B | 1.3B | 1.42B | 1.18B | 1.38B | 1.69B | 1.74B | 1.89B | 2.16B | 2.09B | 1.87B | 1.56B | 1.8B | 1.81B | 1.42B | 1.19B | 1.01B | 1.08B | 849.98M | 651.32M | 448.27M | 337.86M | 258.83M | 188.8M |
| Net Interest Income | -275M | -288M | -319M | -344M | -304M | -260M | -284M | -207M | -256M | -299M | -308M | -327M | -340M | -338M | -329M | -299M | -304M | -301M | -111M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9M | 10M | 21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 275M | 288M | 319M | 344M | 304M | 260M | 284M | 207M | 256M | 299M | 308M | 327M | 340M | 338M | 329M | 299M | 141M | 134M | 132M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -161M | -174M | -395M | -344M | -304M | -461M | -284M | -198M | -319M | -299M | -308M | -496M | -340M | -338M | -329M | -299M | -304M | -301M | -111M | -62M | -40.36M | -70.39M | -62.45M | -72.93M | -56.01M | -50.11M | -46.2M | -27.16M | -21.11M | -23.77M | -17.4M |
| Pretax Income | 335M | 336M | 114M | 373M | -58M | 1.22B | -546M | 901M | 1.04B | 1.12B | 875M | 1.06B | 1.35B | 1.4B | 1.56B | 1.86B | 1.79B | 1.56B | 1.43B | 1.74B | 1.77B | 1.35B | 1.13B | 933.87M | 1.02B | 799.86M | 605.11M | 421.11M | 316.75M | 235.06M | 171.4M |
| Pretax Margin % | 2.17% | 2.16% | 0.7% | 2.13% | -0.32% | 6.27% | -3.42% | 4.51% | 5.15% | 5.56% | 4.45% | 5.5% | 7.09% | 7.38% | 8.1% | 9.89% | 9.72% | 9.07% | 8.69% | 10.57% | 11.38% | 10.01% | 9.67% | 9.08% | 11.2% | 10.68% | 9.84% | 9.24% | 8.6% | 7.68% | 7.18% |
| Income Tax | 63M | 64M | 5M | 56M | -39M | 281M | -383M | 210M | 241M | 258M | 319M | 384M | 482M | 515M | 575M | 692M | 668M | 585M | 540M | 658M | 665.76M | 503.83M | 427.47M | 352.97M | 386.19M | 304.19M | 232.97M | 162.97M | 124.48M | 93.79M | 68.9M |
| Effective Tax Rate % | 18.81% | 19.05% | 4.39% | 15.01% | 67.24% | 23.05% | 70.15% | 23.31% | 23.13% | 23.1% | 36.46% | 36.33% | 35.73% | 36.68% | 36.84% | 37.22% | 37.36% | 37.55% | 37.89% | 37.77% | 37.52% | 37.44% | 37.8% | 37.8% | 37.8% | 38.03% | 38.5% | 38.7% | 39.3% | 39.9% | 40.2% |
| Net Income | 272M | 272M | 109M | 317M | -19M | 938M | -163M | 691M | 801M | 859M | 556M | 673M | 867M | 889M | 986M | 1.17B | 1.12B | 973M | 885M | 1.08B | 1.11B | 841.96M | 703.4M | 580.9M | 635.47M | 495.68M | 372.15M | 258.14M | 192.27M | 141.27M | 102.5M |
| Net Margin % | 1.76% | 1.75% | 0.67% | 1.81% | -0.1% | 4.83% | -1.02% | 3.46% | 3.96% | 4.28% | 2.83% | 3.5% | 4.56% | 4.67% | 5.11% | 6.21% | 6.09% | 5.66% | 5.4% | 6.58% | 7.11% | 6.26% | 6.01% | 5.65% | 6.97% | 6.62% | 6.05% | 5.66% | 5.22% | 4.62% | 4.29% |
| Net Income Growth % | 124.79% | 149.54% | -65.62% | 1768.42% | -102.03% | 675.46% | -123.59% | -13.73% | -6.75% | 54.5% | -17.38% | -22.38% | -2.47% | -9.84% | -15.51% | 4.2% | 15.11% | 9.94% | -18.36% | -2.23% | 31.68% | 19.7% | 21.09% | -8.59% | 28.2% | 33.19% | 44.16% | 34.26% | 36.1% | 37.83% | 40.99% |
| Net Income (Continuing) | 272M | 272M | 109M | 317M | -19M | 938M | -163M | 691M | 801M | 859M | 556M | 673M | 867M | 889M | 986M | 1.17B | 1.12B | 973M | 885M | 1.08B | 1.11B | 841.96M | 703.4M | 580.9M | 635.47M | 495.68M | 372.15M | 258.14M | 192.27M | 141.27M | 102.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.37 | 2.37 | 0.97 | 2.86 | -0.16 | 6.34 | -1.06 | 4.37 | 4.85 | 5.12 | 3.11 | 3.46 | 4.24 | 4.05 | 4.17 | 4.30 | 3.65 | 3.23 | 2.89 | 3.39 | 3.31 | 2.43 | 2.04 | 1.59 | 1.85 | 1.45 | 1.10 | 0.77 | 0.59 | 0.46 | 0.34 |
| EPS Growth % | 119.23% | 144.33% | -66.08% | 1887.5% | -102.52% | 698.11% | -124.26% | -9.9% | -5.27% | 64.63% | -10.12% | -18.4% | 4.69% | -2.88% | -3.02% | 17.81% | 13% | 11.76% | -14.75% | 2.42% | 36.21% | 19.12% | 28.3% | -14.05% | 27.59% | 31.82% | 42.86% | 30.51% | 28.26% | 35.29% | 36% |
| EPS (Basic) | - | 2.43 | 0.98 | 2.88 | -0.16 | 6.42 | -1.06 | 4.40 | 4.88 | 5.14 | 3.12 | 3.48 | 4.28 | 4.08 | 4.19 | 4.33 | 3.67 | 3.25 | 2.89 | 3.41 | 3.34 | 2.45 | 2.06 | 1.61 | 1.89 | 1.48 | 1.13 | 0.80 | 0.61 | 0.23 | 0.35 |
| Diluted Shares Outstanding | 115M | 115M | 112M | 111M | 120M | 148M | 154M | 158M | 165M | 168M | 179M | 195M | 204M | 220M | 237M | 271M | 306M | 306M | 307M | 320M | 334.95M | 346.49M | 344.8M | 365.34M | 346.73M | 335.14M | 333.11M | 333.86M | 325.27M | 307.73M | 301.47M |
| Basic Shares Outstanding | 112M | 112M | 111M | 110M | 120M | 146M | 154M | 157M | 164M | 167M | 178M | 193M | 203M | 218M | 235M | 270M | 304M | 305M | 306M | 318M | 331.94M | 343.66M | 341.46M | 360.81M | 336.68M | 335.14M | 333.11M | 324.63M | 316.13M | 305.66M | 292.86M |
| Dividend Payout Ratio | - | 20.59% | 203.67% | 69.4% | - | 15.67% | - | 61.22% | 49.94% | 42.84% | 64.39% | 51.86% | 36.56% | 33.97% | 30.43% | 23.22% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent top-line erosion
As reported in recent financial statements, Kohl's has experienced a consistent decline in top-line performance, with revenue growth remaining negative across the last ten quarters, culminating in a -2.0% year-over-year contraction in 2026Q1, which highlights the ongoing difficulty in maintaining market share against off-price competitors.
The persistent negative revenue growth suggests that the company's core value proposition is struggling to resonate with the modern suburban consumer. This trend appears to be structural rather than cyclical, as the company has failed to achieve positive growth even during periods of relative stability in the broader retail environment.
Based on the provided income statement data, gross margins have exhibited significant seasonal volatility, dropping to 35.7% in 2025Q4 from a peak of 43.3% in 2025Q2, indicating that the company relies heavily on aggressive promotional activity to clear inventory during peak holiday shopping periods.
The wide variance in gross margins suggests a lack of pricing power, forcing the company to sacrifice profitability to drive volume. Investors should monitor whether the Sephora-at-Kohl's initiative can eventually provide a more stable margin floor, or if it will continue to be offset by discounting in the legacy apparel segments.
According to the quarterly income statement data, operating margins have remained thin, fluctuating between 1.3% and 5.0% over the last ten quarters, which suggests that the company's high fixed-cost structure prevents meaningful operating leverage even when revenue shows seasonal strength during the fourth quarter.
The inability to scale operating income faster than gross profit indicates that SG&A expenses are largely inflexible. This cost rigidity leaves the company highly exposed to any further deterioration in sales, as there is very little margin for error in managing store-level and corporate overhead.
As evidenced by the reported figures, net income has frequently dipped into negative territory during non-holiday quarters, such as the -$14.0 million loss in 2026Q1, demonstrating that the company's annual profitability is almost entirely dependent on the performance of the fourth quarter holiday season.
The reliance on a single quarter for the majority of annual earnings introduces significant risk to the quality of reported EPS. Furthermore, the presence of stock-based compensation, while relatively small, adds a layer of dilution that may further pressure shareholder returns in an environment of stagnant or declining net income.
While management emphasizes strategic pivots, the data suggests a potential 'treadmill effect' where deep discounting is required to sustain revenue, as evidenced by the persistent -4.28% average revenue decline and the thin net margins that leave the company vulnerable to even minor shifts in consumer spending.
Short-sellers would likely focus on the company's inability to achieve consistent profitability outside of the holiday season. The combination of declining revenue and limited cash reserves suggests that the current business model may be struggling to adapt to the secular shift toward off-price and e-commerce retail channels.
Quick answers to the most common questions about buying KSS stock.
For fiscal year 2025, Kohl's Corporation (KSS) reported total revenue of $15.53B. This represents a 550.2% increase compared to $2.39B in 1996.
Kohl's Corporation (KSS) is profitable, generating $272.0M in net income for the fiscal year ending 2025 with a net profit margin of 1.8%.
Kohl's Corporation (KSS) reported an operating income of $510.0M, resulting in an operating profit margin of 3.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Kohl's Corporation (KSS) generated $6.30B in gross profit for the year, representing a gross profit margin of 40.6%. This demonstrates the company's core pricing power and production efficiency.