Kohl's vs Target: Revenue, Profit and Business Model
Kohl's had $15.5B of annual revenue in FY2025 and $272M of net income. Target had $104.8B of annual revenue in FY2025 and $3.7B 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.
Target
Target's net sales fell from $109.120 billion in fiscal 2022 to $104.780 billion in fiscal 2025, while net earnings fell from $4.091 billion in fiscal 2024 to $3.705 billion in fiscal 2025. FY2025 operating income was $5.117 billion, a 4.9% margin; operating cash flow was $6.562 billion and capital expenditures were $3.727 billion. These are annual figures for the year ended January 31, 2026. The separate Q2 FY2026 release reports $26.539 billion of quarterly net sales, up 5.3%, with comparable sales up 3.8%. GAAP diluted EPS was $4.11, including $1.65 per share from $994 million of pretax tariff refunds. Target said EPS rose about 20% excluding those refunds. Its August outlook for FY2026 called for net-sales growth around 5% and EPS of $9.90 to $10.90, including the Q2 refund benefit; guidance is a company forecast, not a completed-year result.
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 |
Target
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $104.8B | $3.7B | 3.5% | -1.7% | Source |
| FY2024 | $106.6B | $4.1B | 3.8% | -0.8% | Source |
| FY2023 | $107.4B | $4.1B | 3.9% | -1.6% | Source |
| FY2022 | $109.1B | $2.8B | 2.5% | +2.9% | Source |
| FY2021 | $106B | $6.9B | 6.6% | +13.3% | Source |
| FY2020 | $93.6B | $4.4B | 4.7% | +19.8% | Source |
| FY2019 | $78.1B | $3.3B | 4.2% | +3.7% | Source |
| FY2018 | $75.4B | $2.9B | 3.9% | +3.6% | Source |
| FY2017 | $72.7B | $2.9B | 4.0% | +3.5% | Source |
| FY2016 | $70.3B | $2.7B | 3.9% | — | 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.
Target
- Stores and digital merchandise
Primary revenue source
Sales of food, essentials, apparel, beauty, home, electronics, toys and seasonal products through stores and digital channels.
- Owned brands
Strategic margin driver
Target-owned and exclusive brands that support margin and differentiation.
- Same-day services and Shipt
Growth and retention stream
Delivery, pickup, Drive Up and Target Circle 360 services that deepen loyalty.
- Roundel retail media
High-margin supplemental stream
Advertising revenue from brands using Target's retail media network.
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.
Target
How it makes money
Target runs a general-merchandise, big-box retail model that pairs low-margin essentials (groceries, household basics) to drive store traffic with higher-margin discretionary categories (apparel, home decor, and private-label brands) to drive profit -- the classic 'basket size' strategy.
Growth strategy
Target is focusing on merchandising authority, guest experience, technology acceleration, team and community strength, stores-as-hubs, same-day fulfillment, retail media and owned-brand renewal.
Competitive advantage
Target's advantage is the mix of curated merchandise, owned brands, convenient stores, same-day fulfillment and a brand position between discount utility and design-led retail.
Questions about Kohl's vs Target
Which company has higher revenue — Kohl's Corporation or Target Corporation?
Kohl's Corporation had $15.5B (FY2025), while Target Corporation had $104.8B (FY2025). By latest annual revenue, Target Corporation is the larger business, with Kohl's Corporation showing a smaller revenue base.
What is the market cap of Kohl's Corporation vs Target Corporation?
Kohl's Corporation has a market capitalisation of $2.0B. A public market cap figure for Target Corporation was not available (it may be privately held).
How does revenue per employee compare for Kohl's Corporation and Target Corporation?
Kohl's Corporation has $185k / employee in revenue per employee, while Target Corporation has $252k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Kohl's Corporation and Target Corporation make money?
Kohl's Corporation and Target Corporation generate revenue in fundamentally different ways. Kohl's Corporation: Kohl's makes money mainly by selling merchandise. Target Corporation: Target runs a general-merchandise, big-box retail model that pairs low-margin essentials (groceries, household basics) to drive store traffic with higher-margin discretionary categories (apparel, home decor, and private-label brands) to drive profit -- the classic 'basket size' strategy.
Is Kohl's Corporation bigger than Target Corporation?
By last reported revenue, Target Corporation ($104.8B (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 Target overview