Kohl's Corporation Revenue & Financials

Kohl's reported total revenue of $15.46 billion in FY2025, down 4.6% from $16.22 billion in FY2024. Net sales declined 4.0% to $14.78 billion, while other revenue fell 10% to $668 million. Gross margin improved 34 basis points to 37.5% of net sales, driven by strong inventory management that reduced clearance markdowns — inventory decreased 7% year-over-year and receipts were down 8%. Cost of merchandise sold was $9.24 billion, yielding gross profit of $5.54 billion. Selling, general, and administrative expenses decreased 4.1% to $5.10 billion, but as a percentage of total revenue, SG&A increased 5 basis points to 32.8%. The company recorded a $129 million gain from a credit card interchange fee lawsuit settlement, which boosted reported operating income to $624 million (4.0% of total revenue) from $433 million (2.7%) in FY2024. On an adjusted basis, excluding the lawsuit gain and impairments, operating income was $510 million (3.3% of total revenue), essentially flat with FY2024's $509 million (3.1%). Net income was $272 million ($2.38 per diluted share), up from $109 million ($0.98) in FY2024. Adjusted net income was $186 million ($1.62 per share), up from $167 million ($1.50). Interest expense was $288 million, down $31 million from FY2024 due to lower revolver utilization and debt repurchases, but still consuming 46% of operating income. The company generated $1.4 billion in operating cash flow, up from $648 million in FY2024, driven by higher net income and a 7% inventory reduction. Capital expenditures were $333 million, down from higher spending in FY2024 on the Etna, Ohio e-commerce fulfillment center. Free cash flow was approximately $1.07 billion. The balance sheet shows $674 million in cash and cash equivalents (including $555 million in short-term investments), up from $134 million in FY2024. Total debt is $6.63 billion, including $1.44 billion in long-term debt, $2.37 billion in finance lease obligations, and $2.65 billion in operating lease obligations. Shareholders' equity is $4.05 billion, giving a debt-to-equity ratio of 162.35%. The company did not repurchase shares in FY2025 or FY2024, and the $3 billion share repurchase authorization (increased in February 2022) remains largely untouched with approximately $2.48 billion remaining. The dividend was reduced to $0.50 per share annually ($0.125 quarterly) in 2025 from $2.00 per share in 2024, saving $166 million in cash.