Kohl’s Corporation (NYSE: KSS) Q1 2025 Earnings Call | 5/29/2025

23 days ago

55:03

Inside Ticker

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Kohl's Q1 2025 earnings call highlighted a performance that exceeded expectations, despite a 4.1% net sales decline and 3.9% comparable sales drop, with a net loss of $15 million (-13 cents/share), a 46% improvement from last year. Key initiatives focused on customer-centric priorities: curating a balanced assortment, reinforcing value and quality, and enhancing the omnichannel experience. Jewelry sales rose 10% after reintroducing 200 fine jewelry shops, and Petites grew in the high teens. Sephora, now in all stores, saw 6% net sales growth, while impulse queue lines expanded to 613 stores. Proprietary brands improved 400 basis points quarter-over-quarter, and coupon-eligible brands increased to boost value perception. Gross margin rose 37 basis points to 39.9%, driven by category mix and inventory management, while SG&A fell 5.2% to $1.2 billion. Inventory was up 1.7% due to tariff strategies but is expected to decline high single digits by year-end. A $360 million senior secured notes offering refinanced upcoming debt, extending maturities to 2029. Despite tariff uncertainties, Kohl's maintained its 2025 guidance: comparable sales down 4–6%, operating margin of 2.2–2.6%, and EPS of 10–60 cents, supported by diversified sourcing and cost discipline. The company emphasized operational excellence and customer loyalty to drive long-term growth.

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Kohl’s Corporation (NYSE: KSS) delivered Q1 2025 results on May 29, 2025, that surpassed Wall Street expectations, narrowing its net loss to $15 million ($0.13 per share) from $27 million ($0.24 per share) a year earlier. Net sales declined 4.1% year-over-year to $3.05 billion, while comparable sales were down 3.9%. Despite the sales drop, Kohl’s improved its gross margin by 37 basis points to 39.9%, driven by better category mix and disciplined inventory management. Selling, general & administrative (SG&A) expenses fell 5.2% to $1.2 billion, reflecting ongoing cost control initiatives. Operating income climbed to $60 million, up from $43 million in the prior year, and operating margin improved to 1.9%. Inventory increased 2% year-over-year to $3.1 billion, as the company prepared for tariff pressures and seasonal demand. Digital sales declined 7.7%, but the Sephora partnership continued to boost in-store performance, with net sales in that segment up 6%. Management reaffirmed its full-year 2025 guidance, expecting net sales to decline 5–7% and EPS in the range of $0.10 to $0.60. Interim CEO Michael Bender highlighted early progress in the company’s turnaround strategy, including a more balanced product assortment and a renewed focus on value. While challenges remain—particularly among middle and low-income shoppers—Kohl’s is seeing early signs of momentum and remains committed to delivering value and a strong customer experience. About Inside Ticker: For more expert analysis and real-time updates on Kohl’s Corporation (NYSE: KSS) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Kohls #KSS #EarningsCall #Q12025 #RetailStocks #Sephora #DepartmentStores #StockMarket #Investing #InsideTicker

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