Kohl's vs Nordstrom: Revenue, Profit and Business Model
Kohl's had $15.5B of annual revenue in FY2025 and $272M of net income. Nordstrom had $15B of annual revenue in FY2024 and $294M 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. Kohl's Corporation is a major American department store retail chain, sustaining a market valuation typically exceeding $3 billion amidst a shifting retail landscape.
Nordstrom
Nordstrom's last public annual report covered FY2024 (ended February 1, 2025): total revenues of $15.016B, net sales of $14.557B, and net earnings of $294M, up from $134M in FY2023. Revenue peaked at $15.860B in FY2018, fell to $10.715B during the FY2020 pandemic year with a $690M loss, and has hovered around $15B since. Since going private in May 2025, Nordstrom no longer publishes quarterly results. Leadership told WWD in early 2026 that the company had less debt than a year earlier and had already repaid the debt taken on for the buyout using operating cash. Nordstrom, Inc. is a major American luxury department store chain, maintaining a market valuation generally exceeding $3 billion despite heavy shifts in the retail sector.
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 |
Nordstrom
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2024 | $15B | $294M | 2.0% | +2.2% | Source |
| FY2023 | $14.7B | $134M | 0.9% | -5.4% | Source |
| FY2022 | $15.5B | $245M | 1.6% | +5.0% | Source |
| FY2021 | $14.8B | $178M | 1.2% | +38.0% | Source |
| FY2020 | $10.7B | -$690M | -6.4% | -31.0% | Source |
| FY2019 | $15.5B | $496M | 3.2% | -2.1% | Source |
| FY2018 | $15.9B | $564M | 3.6% | +2.5% | Source |
| FY2017 | $15.5B | $437M | 2.8% | +4.9% | Source |
| FY2016 | $14.8B | $354M | 2.4% | +2.2% | Source |
| FY2015 | $14.4B | $600M | 4.2% | — | 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.
Nordstrom
- Nordstrom Banner (Full-Line Stores and Nordstrom.com)
Majority of net sales
Full-price sales of designer and premium apparel, shoes, beauty, and accessories through full-line stores, Nordstrom Local, and Nordstrom.com.
- Nordstrom Rack (Stores and NordstromRack.com)
Remainder of net sales
Off-price sales through Rack stores and NordstromRack.com; Rack is the company's main source of new customers.
- Credit Card Revenue
About $459M in FY2024
Revenue from the Nordstrom credit card program with TD Bank, the difference between FY2024 total revenues ($15.016B) and net sales ($14.557B).
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.
Nordstrom
How it makes money
Nordstrom makes money by selling apparel, shoes, beauty, accessories, and home goods through two banners. The Nordstrom banner covers full-line department stores, Nordstrom Local service hubs, and Nordstrom.com, selling designer and premium brands at full price with services such as alterations and styling.
Growth strategy
Nordstrom's growth plan has three parts. First, accelerate Nordstrom Rack, its largest source of new customers, with 22 openings in 2025 and a goal of up to 50 per year. Second, refine full-line store assortments, adding younger brands such as Princess Polly and planned 2026 additions such as NikeSkims and Hill House Home.
Competitive advantage
Nordstrom's advantage is a service reputation built over 125 years combined with a connected store, digital, and off-price network. Shoppers can buy online and pick up, return, or get alterations in stores, and Rack introduces younger, value-focused customers who often move to the full-price banner. Management says a good share of new Rack customers shop Nordstrom within three to four years.
Questions about Kohl's vs Nordstrom
Which company has higher revenue — Kohl's Corporation or Nordstrom, Inc.?
Kohl's Corporation had $15.5B (FY2025), while Nordstrom, Inc. had $15.0B (FY2024). By latest annual revenue, Kohl's Corporation is the larger business, with Nordstrom, Inc. showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Kohl's Corporation vs Nordstrom, Inc.?
Kohl's Corporation has a market capitalisation of $2.0B. A public market cap figure for Nordstrom, Inc. was not available (it may be privately held).
How does revenue per employee compare for Kohl's Corporation and Nordstrom, Inc.?
Kohl's Corporation has $185k / employee in revenue per employee, while Nordstrom, Inc. has $273k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Kohl's Corporation and Nordstrom, Inc. make money?
Kohl's Corporation and Nordstrom, Inc. generate revenue in fundamentally different ways. Kohl's Corporation: Kohl's makes money mainly by selling merchandise. Nordstrom, Inc.: Nordstrom makes money by selling apparel, shoes, beauty, accessories, and home goods through two banners.
Is Kohl's Corporation bigger than Nordstrom, Inc.?
By last reported revenue, Kohl's Corporation ($15.5B (FY2025)) is the larger company compared to Nordstrom, Inc. ($15.0B (FY2024)). 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 Nordstrom overview