Kohl's vs Macy's: Revenue, Profit and Business Model
Kohl's reported $15.5B of revenue in FY2025 and $272M of net income. Macy's reported $22.6B of revenue in FY2025 and $642M of net income.
Latest financial snapshot
Financial summary
Kohl's
Kohl's revenue fell from a peak of about $20.2 billion in FY2018 to $15.5 billion in FY2025. Over that time, management cut inventory and reduced the dividend to $0.125 per quarter in 2025. It also refinanced debt at higher rates, including $360 million of 10.000% secured notes due 2030. FY2025 net income was $272 million, which included a $129 million interchange-lawsuit settlement gain. Results improved in 2026. In Q2 2026, ended August 1, net sales fell 0.9% to $3.3 billion, gross margin rose 305 basis points to 43.0%, and net income was $151 million ($1.28 per share). That quarter's margin got a boost from about $100 million of tariff refunds. Kohl's raised its FY2026 adjusted EPS outlook to $1.80-$2.40 and said it would restart share buybacks.
Macy's
Macy's revenue has drifted down from $25.4B in FY2022 to $22.6B in FY2025 as the company closes stores, but profitability has recovered from a $45M net income low in FY2023 to $642M in FY2025. Comparable sales turned positive for FY2025, and Q2 2026 marked the fifth straight quarter of comparable-sales growth. After Q2 2026 the company raised FY2026 guidance to $21.68B-$21.83B in net sales and $2.15-$2.35 in adjusted EPS. Owned real estate, including Herald Square, remains a significant asset and drew takeover interest from Arkhouse and Brigade in 2023-2024.
Revenue and profit by year
Kohl's
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $15.5B | $272M | 1.8% | -4.3% | Source |
| FY2024 | $16.2B | $109M | 0.7% | -7.2% | Source |
| FY2023 | $17.5B | $317M | 1.8% | -3.4% | Source |
| FY2022 | $18.1B | -$19M | -0.1% | -6.9% | Source |
| FY2021 | $19.4B | $938M | 4.8% | +21.8% | Source |
| FY2020 | $16B | -$163M | -1.0% | -20.1% | Source |
| FY2019 | $20B | $691M | 3.5% | -1.3% | Source |
| FY2018 | $20.2B | $801M | 4.0% | +0.7% | Source |
| FY2017 | $20.1B | $859M | 4.3% | +2.0% | Source |
| FY2016 | $19.7B | $556M | 2.8% | — | Source |
Macy's
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $22.6B | $642M | 2.8% | -1.7% | Source |
| FY2024 | $23B | $582M | 2.5% | -3.6% | Source |
| FY2023 | $23.9B | $45M | 0.2% | -6.2% | Source |
| FY2022 | $25.4B | $1.1B | 4.5% | +0.2% | Source |
| FY2021 | $25.4B | $1.4B | 5.6% | +46.4% | Source |
| FY2020 | $17.3B | -$3.9B | -22.7% | -29.4% | Source |
| FY2019 | $24.6B | $564M | 2.3% | -1.6% | Source |
| FY2018 | $25B | $1.1B | 4.4% | +0.1% | Source |
| FY2017 | $24.9B | $1.6B | 6.3% | -3.7% | Source |
| FY2016 | $25.9B | $627M | 2.4% | — | Source |
Where the revenue comes from
Kohl's
- Merchandise Sales - Women's~23.3%
Women's apparel generated $3.60 billion in FY2025, representing 24.4% of net sales. The category includes private labels (Sonoma Goods for Life, Apt. 9, Croft & Barrow) and national brands. Sales declined 5.7% year-over-year, reflecting broad weakness in women's apparel demand.
- Merchandise Sales - Accessories (Including Sephora)~20.2%
Accessories, including Sephora at Kohl's beauty shops, generated $3.12 billion in FY2025, 21.1% of net sales. It was the only category to grow, up about 2%, helped by Sephora shops in more than 1,100 stores.
- Merchandise Sales - Men's~19.0%
Men's apparel generated $2.93 billion in FY2025, representing 19.8% of net sales. The category includes private labels and national brands. Sales declined 4.8% year-over-year.
- Merchandise Sales - Home~14.3%
Home goods generated $2.21 billion in FY2025, representing 15.0% of net sales. The category includes bedding, bath, kitchen, decor, and furniture. Sales declined 4.3% year-over-year, though the company expanded its home assortment under then-CEO Tom Kingsbury.
- Merchandise Sales - Children's~11.0%
Children's apparel and baby gear generated $1.70 billion in FY2025, representing 11.5% of net sales. The category includes the Babies 'R' Us shop-in-shop partnership in approximately 200 stores. Sales declined 6.5% year-over-year.
- Merchandise Sales - Footwear~7.8%
Footwear generated $1.21 billion in FY2025, representing 8.2% of net sales. The category includes athletic, casual, and dress shoes. Sales declined 6.9% year-over-year.
- Other Revenue (Credit Card, Advertising, Gift Card Breakage)~4.3%
Other revenue generated $668 million in FY2025, down 10% from FY2024. This includes credit card operations (finance charges, late fees, less write-offs), third-party advertising on Kohls.com, and unused gift card breakage. Credit card revenue declined due to lower sales to charge customers and an accounting shift of expenses from SG&A to Other Revenue.
Macy's
- Merchandise Net Sales
Sales of apparel, accessories, beauty, home, furniture, jewelry, watches, and other merchandise through stores and digital channels.
- Women's Accessories, Shoes, Cosmetics and Fragrances
Largest disclosed merchandise family in FY2025 net sales.
- Women's Apparel
Women's apparel sold across Macy's and Bloomingdale's channels.
- Men's and Kids'
Men's and children's apparel and related categories.
- Other Revenue
Other revenue including credit-card and service-related revenue beyond merchandise net sales.
Business model and strategy
Kohl's
How it makes money
Kohl's makes money mainly by selling merchandise. In FY2025 net sales were $14.8 billion of $15.5 billion total revenue. It runs a high-low promotional model: frequent percent-off coupons, Kohl's Cash rewards and clearance events bring shoppers back. Its mix combines national brands such as Nike and Levi's with higher-margin private labels like Sonoma Goods for Life, Croft & Barrow and Apt. 9.
Growth strategy
Bender's plan is narrower than earlier turnarounds. It leans on value pricing and proprietary brands, a return of coupons the core customer likes, and categories that are growing such as Sephora beauty, toys, home and impulse gifting. It also relies on lower inventory and expenses. In Q2 2026, management said proprietary brands, Kohl's Card sales, home, toys and digital all improved.
Competitive advantage
Most Kohl's stores are single-level boxes in strip and power centers, not in enclosed malls. Shoppers can park at the door, and the stores have avoided much of the mall traffic collapse that hurt Sears and JCPenney. Two other assets are hard to copy. One is the Sephora at Kohl's beauty shops, now in more than 1,100 stores.
Macy's
How it makes money
Macy's is an omnichannel retailer that buys national brands (and develops private brands such as INC International Concepts, Charter Club and Hotel Collection) and sells them through stores and digital sites under three nameplates: Macy's, Bloomingdale's and Bluemercury. Merchandise net sales were $21.764B in FY2025.
Growth strategy
Macy's Bold New Chapter strategy, announced in February 2024, has three parts: close roughly 150 underperforming Macy's stores through 2026, invest in a go-forward fleet led by the Reimagine 200 stores (more staffing, better assortments and visuals), and accelerate Bloomingdale's and Bluemercury, including small-format Bloomie's and new Bluemercury stores.
Competitive advantage
Macy's main advantages are national brand recognition, deep vendor relationships with major apparel and beauty brands, a proprietary credit-card and loyalty base, cultural assets such as the Thanksgiving Day Parade and Herald Square flagship, and an upscale banner in Bloomingdale's.
Questions about Kohl's vs Macy's
Which company has higher revenue — Kohl's Corporation or Macy's, Inc.?
Kohl's Corporation reported $15.5B (FY2025), while Macy's, Inc. reported $22.6B (FY2025). By last reported revenue, Macy's, Inc. is the larger business, with Kohl's Corporation reporting a smaller revenue base.
What is the market cap of Kohl's Corporation vs Macy's, Inc.?
Kohl's Corporation's market capitalisation stands at $2.0B, while Macy's, Inc.'s is $5.8B. Macy's, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Kohl's Corporation.
Which is more financially efficient — Kohl's Corporation or Macy's, Inc.?
Kohl's Corporation generates $185k / employee in revenue per employee, while Macy's, Inc. generates $251k / employee. Macy's, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Kohl's Corporation and Macy's, Inc. make money?
Kohl's Corporation and Macy's, Inc. generate revenue in fundamentally different ways. Kohl's Corporation: Kohl's makes money mainly by selling merchandise. Macy's, Inc.: Macy's is an omnichannel retailer that buys national brands (and develops private brands such as INC International Concepts, Charter Club and Hotel Collection) and sells them through stores and digital sites under three nameplates: Macy's, Bloomingdale's and Bluemercury.
Which company is valued higher relative to revenue — Kohl's Corporation or Macy's, Inc.?
On a price-to-sales (P/S) basis, Kohl's Corporation trades at 0.1x P/S and Macy's, Inc. at 0.3x P/S. Macy's, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Kohl's Corporation. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Kohl's Corporation bigger than Macy's, Inc.?
By last reported revenue, Macy's, Inc. ($22.6B (FY2025)) is the larger company compared to Kohl's Corporation ($15.5B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Kohl's vs Macy's overview