Abstract

Kohl's will report fiscal second-quarter 2026 results on August 26, 2026 Pre-Mkt, with consensus pointing to modest revenue growth and improved EPS against a tough apparel backdrop.

Market Forecast

Consensus for Kohl’s current quarter anticipates total revenue of 3.34 billion US dollars, up 0.80% year over year, EBIT of 152.10 million US dollars, up 28.29% year over year, and EPS of 0.58, up 97.00% year over year. The company’s prior disclosure implies a low-single-digit revenue change with gross margin stabilization and a return to positive net profitability; adjusted EPS is expected to rebound sharply year over year on cost controls and fewer markdowns. Core apparel and accessories remain the main revenue engines, with stable inventory and a focus on traffic-driving partnerships creating most of the quarter’s setup. Accessories appears positioned as the most promising segment at 0.64 billion US dollars last quarter, and stabilizing discretionary demand could support slight year-over-year improvement from a soft base.

Last Quarter Review

In the previous quarter, Kohl’s delivered revenue of 2.998 billion US dollars, a gross profit margin of 43.10%, GAAP net loss attributable to shareholders of 14.00 million US dollars, a net profit margin of -0.44%, and adjusted EPS of -0.13, with revenue down 1.67% year over year and EBIT down 23.33% year over year. A notable development was better-than-expected EPS relative to consensus, reflecting tighter expense control and disciplined promotions despite soft demand. The main business mix featured Women’s at 0.85 billion US dollars, Accessories at 0.64 billion US dollars, Men’s at 0.57 billion US dollars, Home at 0.37 billion US dollars, Kids at 0.31 billion US dollars, Footwear at 0.26 billion US dollars, and Other at 0.17 billion US dollars, with quarter-on-quarter net profit change of -111.20%.

Current Quarter Outlook

Core Apparel and Accessories

Kohl’s core revenue base remains concentrated in Women’s, Men’s, and Accessories, which together account for more than half of sales and determine overall traffic and conversion. The quarter’s consensus revenue profile suggests only a slight year-over-year top-line gain, indicating ongoing promotional sensitivity in apparel even as inventory is better balanced. The company’s ability to maintain a gross margin near last quarter’s level while pursuing targeted promotions will likely be a key determinant of EPS delivery. Management’s merchandising and space allocation within Women’s and Accessories have sought to prioritize flow of newness and seasonally relevant assortments; execution here should influence basket size and full-price sell-through, especially amid volatile discretionary demand.

Most Promising Segment: Accessories

Accessories, at 0.64 billion US dollars last quarter, offered relative resilience in recent periods compared with more cyclical apparel categories. A normalization of markdown cadence and improving attachment rates at checkout can amplify Accessories’ gross margin mix benefit when apparel remains uneven. If store traffic responds to targeted events and loyalty-driven cross-selling, Accessories could deliver positive year-over-year contribution despite a muted overall top line, supporting EBIT outperformance versus revenue. The category’s flexibility in refreshing seasonal lines, together with leaner inventories, may allow faster reaction to demand pockets, helping sustain margin recovery implied by the EPS estimate’s rebound.

Stock Price Drivers This Quarter

Margin trajectory stands at the center of the equity debate: investors will parse gross margin relative to last quarter’s 43.10% and the net margin path back to positive territory after a -0.44% print. With consensus revenue growth of 0.80%, the spread between sales and EPS expectations implies operational leverage primarily through cost discipline and lower markdowns; any variance in clearance activity or shrink could sway EPS. Guidance for the back half, especially commentary on traffic, promotional intensity, and inventory receipts for fall and holiday, will likely set the stock’s direction, as will updates on category mix within Women’s, Men’s, and Accessories and the pace of EBIT improvement toward the 152.10 million US dollars estimate.

Analyst Opinions

Across recent commentary, the majority stance skews cautious rather than outright bullish, emphasizing margin recovery uncertainty despite an anticipated EPS rebound from a weak year-ago base. One report highlighted a sharp share move following a prior quarter’s update, but prevailing views continue to flag execution risk around clearance levels and discretionary demand elasticity, especially in Women’s apparel. Several analysts underscored that while consensus embeds a 28.29% year-over-year increase in EBIT and a 97.00% increase in EPS, the revenue base case of 0.80% growth leaves limited room for error on markdowns and expense control. The cautious camp expects that stable-to-slightly better gross margin, combined with tight SG&A management, can meet or modestly miss the EPS bar if traffic underwhelms, placing heightened focus on forward guidance for fall assortments and promotional cadence into holiday.