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Aug 02
Kohl's Q2 2025 Earnings Report
Kohl's delivered improved profitability in Q2 2025 aided by cost control and a legal settlement.
Key Takeaways
Kohl’s reported a net income of $153 million and EPS of $1.35 in Q2 FY25, with gross margin expansion and disciplined expense management. Adjusted EPS was $0.56, excluding a $129 million legal settlement gain.
EPS reached $1.35, driven in part by a $129M legal settlement gain
Adjusted EPS came in at $0.56, reflecting core performance
Net sales declined 5.1% YoY, but gross margin improved by 28 basis points
Operating cash flow more than doubled compared to prior year
Kohl's
Kohl's
Kohl's Revenue by Geographic Location
Revenue by Geographic Location
Total Revenue
CapyFin.com Forward Guidance
Kohl's provided a cautious full-year outlook with expectations of continued sales pressure and moderated profitability.
Positive Outlook
- Maintains capital expenditure guidance of $400 million
- Plans continued debt reduction with disciplined financial management
- Legal settlement supported short-term profitability
- Operating margin improvement reflects cost discipline
- SG&A expenses decreased YoY
Challenges Ahead
- Net sales expected to decline 5% to 6% YoY
- Comparable sales expected to fall 4% to 5%
- Adjusted EPS outlook lowered to $0.50–$0.80
- Continued pressure from economic environment
- Inventory levels slightly elevated, requiring careful management