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Aug 02, 2025
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
Revenue by Geographic Location
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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