Financial Data and Key Metrics Changes - Net sales declined 3.9% in Q4 and 4% for the year, with comparable sales down 2.8% in Q4 and 3.1% for the year [29][30] - Diluted earnings per share for Q4 were $1.07, an improvement from the previous year [7][33] - Gross margin in Q4 expanded by 25 basis points to 33.1% of sales, driven by strong inventory management [31] - SG&A expenses decreased by $76 million, or 4.9% in Q4, reflecting lower store, marketing, and fulfillment-related expenses [31][32] Business Line Data and Key Metrics Changes - Proprietary apparel was flat in Q4, while juniors business grew 8%, benefiting from investments in the proprietary brand SO [10][11] - The home business underperformed due to softness in seasonal decor, with inventory depth issues limiting customer choice [11][12] - Accessories business outperformed, with Sephora growing 2% and comparable sales improving to flat in Q4 [12][13] Market Data and Key Metrics Changes - Digital sales grew low single digits in Q4 but were flat for the year, primarily due to higher traffic offset by lower conversion [29][30] - Store sales declined mid-single digits for both Q4 and the full year, primarily due to a decrease in transactions [29][30] Company Strategy and Development Direction - The company is focused on stabilizing the business and strengthening operational capabilities for future growth [4][5] - Key initiatives for 2026 include offering a curated assortment, enhancing proprietary brands, and improving promotional strategies to deliver better value [15][20][22] - The company aims to reestablish itself as a leader in value and quality, particularly for low to middle-income customers [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q4, including severe weather impacting sales and the need for better execution in seasonal business [7][8] - The company remains cautious about the macroeconomic environment, particularly regarding the spending behavior of core customers [35][36] - For 2026, the company expects net sales and comparable sales to be in the range of a 2% decrease to flat versus 2025 [36] Other Important Information - The company ended the year with $674 million in cash and cash equivalents, an increase of $540 million from the previous year [34] - Inventory decreased approximately 7% compared to last year, positioning the company with stronger, fresher spring inventory [34] Q&A Session Summary Question: Can you talk about the Buy Kohl's campaign and expectations for Kohl's cardholder comps in 2026? - The Buy Kohl's campaign emphasizes the proprietary brand portfolio and aims to showcase these brands across both stores and digital platforms [40][41] - Expectations for Kohl's cardholder comps are to improve from mid-teens declines to mid-single digits, driven by investments in proprietary brands and restoring trip assurance [42][44] Question: What are the specific headwinds captured in the EBIT margin guidance? - The EBIT margin guidance reflects challenges in leveraging SG&A costs due to the fixed cost nature of the business, with a focus on maintaining expense management [55][56] Question: What are the biggest opportunities in the women's and home categories? - The women's business sees opportunities in juniors and denim, while the home category will focus on providing more choices and sharp price points in seasonal decor [62][65]

Financial Data and Key Metrics Changes - Net sales declined 3.9% in Q4 and 4% for the year, with comparable sales down 2.8% in Q4 and 3.1% for the year [28] - Diluted earnings per share for Q4 were $1.07, an improvement from the previous year [7] - Gross margin in Q4 expanded by 25 basis points to 33.1% of sales, driven by strong inventory management [30] - SG&A expenses decreased by $76 million, or 4.9% in Q4, reflecting lower store, marketing, and fulfillment-related expenses [30] Business Line Data and Key Metrics Changes - Proprietary apparel was flat in Q4, while juniors business grew 8%, indicating strong performance in this category [10][11] - The home business underperformed due to softness in seasonal decor, with inventory depth issues impacting sales [11] - Accessories business increased low single digits, driven by the expansion of Impulse, which helped deliver over a 40% comparable sales increase [11] Market Data and Key Metrics Changes - Digital sales grew low single digits in Q4 but were flat for the year, indicating challenges in conversion despite higher traffic [28] - Store sales declined mid-single digits for both Q4 and the full year, primarily due to a decrease in transactions [28] Company Strategy and Development Direction - The company is focused on stabilizing the business and strengthening operational capabilities for future growth [5] - Key initiatives for 2026 include offering a curated assortment, enhancing proprietary brands, and improving inventory management [14][19] - The company aims to reestablish itself as a leader in value and quality, particularly for low to middle-income customers [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of severe weather on Q4 sales and identified operational opportunities to improve inventory allocation [7][8] - The company remains cautious about the macroeconomic environment, particularly regarding the spending behavior of core customers [34] - For 2026, the company expects net sales and comparable sales to be in the range of a 2% decrease to flat versus 2025 [35] Other Important Information - The company ended the year with $674 million in cash and cash equivalents, an increase of $540 million from the previous year [32] - Inventory decreased approximately 7% compared to last year, indicating disciplined inventory management [33] - The company plans to invest in proprietary brands and enhance marketing efforts to drive sales [21][23] Q&A Session Summary Question: Can you talk about the By Kohl's campaign and expectations for Kohl's cardholder comps in 2026? - The By Kohl's campaign aims to showcase proprietary brands and enhance customer engagement, particularly for Kohl's Card members [39][40] - Expectations for Kohl's cardholder comps are optimistic, with improvements anticipated in the back half of 2026 as new initiatives take effect [41][43] Question: What are the immediate catalysts for recapturing market share in 2026? - The focus on proprietary brands and offering value through lower price points are seen as significant catalysts for market share recovery [51][52] Question: What are the expected headwinds for EBIT margin guidance? - The guidance reflects challenges in leveraging SG&A costs and managing tariff impacts, with a focus on maintaining expense discipline [54][56] Question: What are the biggest opportunities in the women's and home categories? - The women's business is expected to benefit from the juniors category and a curated assortment, while the home category will focus on providing more choices and sharp price points [62][64]

Kohl's (KSS) came out with quarterly earnings of $1.07 per share, beating the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +25.29%. A quarter ago, it was expected that this department store operator would post a loss of $0.19 per share when it actually produced earnings of $0.1, delivering a surprise of +152.63%.Over the last four quarters, the ...

Q4 Results Presentation March 10, 2026 1 Cautionary Statement Regarding Forward-Looking Information This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as "believes," "expects," "may," "will," "should," "anticipates," "plans," or similar expressions to identify forward-looking statements. Forward-looking statements include, but are not limited to, the information under "2026 O ...

Market Overview - The market experienced significant volatility, with a notable turnaround in indices during the latter half of the afternoon, influenced by commentary from President Trump [2][3] - Oil prices continued to decline, dropping as much as 10% due to improving commentary on the Iranian war, before partially recovering [3] Company Performance: HPE - HPE reported solid earnings, with adjusted earnings per share exceeding expectations and revenue rising 18% year-over-year [6][7] - Networking showed exceptional growth, surging over 150% year-over-year, driven by strong demand in campus data center networking and security [8] - Non-GAAP gross margins improved significantly, rising over 700 basis points year-over-year, attributed to better product mix and pricing discipline [9] - Despite the earnings beat, revenue slightly missed expectations, raising concerns about pricing pressures from the chip shortage [9][10] Company Performance: Taiwan Semiconductor - Taiwan Semiconductor reported a 22% year-over-year revenue growth in February, despite a 20.8% monthly decline [12][14] - The company continues to thrive due to increased demand for AI hardware and software, with January revenue rising 30% [13] - The growth rate in February was affected by the lunar new year, making the year-over-year increase appear less representative [14] Company Performance: Kohl's - Kohl's shares faced pressure following mixed quarterly results, with earnings per share above analyst estimates but net sales declining 4% year-over-year [19][20] - Comparable sales dropped 2.8%, worse than the expected decline, leading to an 8% drop in stock price before a slight recovery [20] - The company is undergoing a turnaround effort, with management highlighting progress, but revenue figures did not support this narrative [20]

Core Insights - The company reported disappointing earnings, which contrasts sharply with the previous quarter's record rally following positive results [1] Group 1 - The earnings report indicates a significant decline in performance compared to the prior quarter [1]

Core Viewpoint - Kohl's reported that sales fell short of expectations in its fiscal fourth quarter, despite an increase in profit as the company continues its efforts to revitalize its business [1] Sales Performance - Sales during the fiscal fourth quarter did not meet market expectations [1] Profitability - The company experienced a rise in profit, indicating some success in its turnaround strategies [1]

Group 1 - Kohl's forecasted its annual sales below Wall Street estimates due to budget-conscious shoppers reducing spending on higher-margin items [1] - The decline in consumer spending is particularly affecting categories such as apparel and home goods [1]

Exhibit 99.1 Michael J. Bender, Kohl's Chief Executive Officer, said, "We are ending 2025 in a stronger position than we started, with important work still ahead of us. Over the past year, our efforts have been focused on resetting our foundation. This focus is intended to stabilize the business and strengthen our operational ability to build for a stronger future. In 2025, we made meaningful progress, despite our Q4 topline coming in softer than our expectations. We were able to manage the business with di ...

Core Viewpoint - Kohl's Corporation is facing challenges in a competitive retail environment, with anticipated declines in earnings and revenue for the upcoming quarter [2][3][6] Financial Performance - Analysts expect Kohl's to report earnings per share (EPS) of $0.85, reflecting a 10.5% decline from the previous year [2][6] - Revenue for the quarter is projected to be approximately $5.07 billion, a decrease of 3.1% from $5.23 billion reported in the same quarter last year [3][6] Market Position and Valuation - Kohl's has a price-to-earnings (P/E) ratio of 8.73, indicating a relatively low valuation compared to its earnings [4][6] - The price-to-sales ratio is 0.11, suggesting that investors are paying 11 cents for every dollar of sales [4] - The enterprise value to sales ratio is 0.53, reflecting the company's total value in relation to its sales [4] Financial Health - The enterprise value to operating cash flow ratio is 6.81, indicating cash flow generation relative to enterprise value [5] - The company's earnings yield is 11.46%, offering a substantial return on its earnings [5] - Kohl's has a debt-to-equity ratio of 1.73, indicating significant reliance on debt financing [5][6] - The current ratio of 1.30 suggests a reasonable level of liquidity to cover short-term liabilities [5]