Kohl’s(KSS) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter net sales decreased 9.4% year-over-year to $5.2 billion, while fiscal year 2024 net sales decreased 7.2% to $15.4 billion[4] - Comparable sales decreased 6.7% for the fourth quarter and 6.5% for the fiscal year 2024[5] - Fourth quarter diluted earnings per share (EPS) was $0.43, with adjusted diluted EPS of $0.95; fiscal year 2024 diluted EPS was $0.98, with adjusted diluted EPS of $1.50[4] - Operating income for the fourth quarter was $126 million, a decrease from $299 million in the prior year, representing 2.3% of total revenue[5] - Net income for the fourth quarter was $48 million, compared to $186 million in the prior year, while fiscal year net income was $109 million, down from $317 million[5] Inventory and Cash Flow - Inventory increased by 2% year-over-year to $2.9 billion[5] - Net cash provided by operating activities decreased to $648 million from $1,168 million, reflecting a decline of 44.6% year-over-year[17] - Merchandise inventories saw a significant change, decreasing by $60 million compared to an increase of $315 million in the previous year[17] - Net cash used in investing activities was $467 million, down from $562 million, indicating a reduction of 16.9%[17] - Net cash used in financing activities decreased to $230 million from $576 million, a decline of 60%[17] - Cash and cash equivalents at the end of the period were $134 million, down from $183 million at the beginning of the period[17] Future Projections - The company expects net sales to decrease between 5% to 7% and comparable sales to decrease between 4% to 6% for fiscal year 2025[10] - Capital expenditures are projected to be in the range of $400 million to $425 million for fiscal year 2025[10] Dividends and Shareholder Returns - Kohl's Board of Directors declared a quarterly cash dividend of $0.125 per share, payable on April 2, 2025[10] - Dividends paid increased slightly to $222 million from $220 million, reflecting a marginal increase of 0.9%[17] Expenses and Borrowing - Depreciation and amortization expenses were $743 million, slightly down from $749 million in the previous year[17] - Share-based compensation decreased to $30 million from $42 million, a reduction of 28.6%[17] - The company reported a net borrowing of $198 million under the revolving credit facility, compared to only $7 million in the previous year[17]