Kohl’s(KSS) - 2026 Q2 - Quarterly Report

Form 10-Q Filing Information Outlines key administrative details for Kohl's Corporation's Form 10-Q, including registrant, period, trading symbol, and common stock outstanding - Registrant: KOHL'S CORPORATION[3] - Quarterly period ended: August 2, 2025[2] - Trading Symbol: KSS on New York Stock Exchange[4] - Filer Status: Large Accelerated Filer[5] - Common Stock Outstanding: 112,074,683 shares as of August 29, 2025[6] PART I. FINANCIAL INFORMATION Item 1. Financial Statements Presents Kohl's unaudited consolidated financial statements for the interim period ended August 2, 2025, including balance sheets, statements of operations, cash flows, and detailed notes Consolidated Balance Sheets Consolidated Balance Sheets (Dollars in Millions) | Item | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :-------------------------------- | :------------- | :--------------- | :------------- | | Cash and cash equivalents | $174 | $134 | $231 | | Merchandise inventories | 2,994 | 2,945 | 3,151 | | Total current assets | 3,474 | 3,388 | 3,713 | | Total assets | $13,391 | $13,559 | $14,180 | | Total current liabilities | 2,548 | 3,131 | 3,438 | | Long-term debt | 1,520 | 1,174 | 1,173 | | Total shareholders' equity | $3,927 | $3,802 | $3,830 | | Total liabilities and shareholders' equity | $13,391 | $13,559 | $14,180 | Consolidated Statements of Operations Consolidated Statements of Operations (Dollars in Millions, Except per Share Data) | Item | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Net sales | $3,347 | $3,525 | $6,396 | $6,703 | | Other revenue | 199 | 207 | 383 | 411 | | Total revenue | 3,546 | 3,732 | 6,779 | 7,114 | | Cost of merchandise sold | 2,011 | 2,128 | 3,845 | 4,051 | | Operating income | 279 | 166 | 339 | 209 | | Net income | $153 | $66 | $139 | $39 | | Net income per share: Basic | $1.37 | $0.59 | $1.24 | $0.35 | | Net income per share: Diluted | $1.35 | $0.59 | $1.23 | $0.35 | Consolidated Statements of Changes in Shareholders' Equity Consolidated Statements of Changes in Shareholders' Equity (Dollars in Millions, Except per Share Data) | Item | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Total shareholders' equity, end of period | $3,927 | $3,830 | $3,927 | $3,830 | | Net income | 153 | 66 | 139 | 39 | | Dividends paid | (14) | (56) | (28) | (112) | | Dividends paid per common share | $0.125 | $0.50 | $0.25 | $1.00 | Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows (Dollars in Millions) | Item | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $506 | $247 | | Net cash used in investing activities | (179) | (237) | | Net cash (used in) provided by financing activities | (287) | 38 | | Net increase in cash and cash equivalents | 40 | 48 | | Cash and cash equivalents at end of period | $174 | $231 | Notes to Consolidated Financial Statements 1. Basis of Presentation - Financial statements are prepared in accordance with U.S. GAAP for interim information and do not include all fiscal year-end footnotes[18] - Results for any quarter are not necessarily indicative of full fiscal year results due to the seasonality of the business[19] - Kohl's operates as a single reportable segment[20] - Supplier finance program obligations recorded in Accounts Payable were $226 million as of August 2, 2025, up from $97 million as of February 1, 2025[21] - Recognized $11 million in Impairments, store closing, and other costs in Q2 2025, primarily related to the closure of the Monroe, Ohio E-commerce Fulfillment Center[22] - Recognized a $129 million gain, net of legal fees, from a credit card interchange fee lawsuit settlement in Q2 2025[25] - Assessing the impact of new FASB ASUs: ASU 2023-09 (Income Tax Disclosures, effective FY2025) and ASU 2024-03 (Expense Disaggregation Disclosures, effective FY2026)[26][27] 2. Revenue Recognition Net Sales by Line of Business (Dollars in Millions) | Line of Business | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :----------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Women's | $943 | $1,004 | $1,794 | $1,927 | | Accessories (including Sephora) | 673 | 666 | 1,319 | 1,284 | | Men's | 689 | 740 | 1,273 | 1,340 | | Home | 406 | 436 | 776 | 828 | | Children's | 335 | 359 | 647 | 703 | | Footwear | 301 | 320 | 587 | 621 | | Net sales | $3,347 | $3,525 | $6,396 | $6,703 | - Unredeemed gift cards and merchandise return card liabilities totaled $242 million as of August 2, 2025, a decrease from $308 million as of February 1, 2025 and $270 million as of August 3, 2024[29] 3. Debt - Outstanding borrowings under the $1.5 billion revolving credit facility decreased to $75 million as of August 2, 2025, from $290 million (Feb 1, 2025) and $410 million (Aug 3, 2024)[30] Long-term Debt Outstanding (Dollars in Millions) | Maturity | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :------- | :------------- | :--------------- | :------------- | | 2025 | $— | $353 | $353 | | 2029 | 42 | 42 | 42 | | 2030 | 360 | — | — | | 2031 | 500 | 500 | 500 | | 2033 | 112 | 112 | 112 | | 2037 | 101 | 101 | 101 | | 2045 | 427 | 427 | 427 | | Outstanding secured and unsecured senior debt | 1,542 | 1,535 | 1,535 | | Long-term secured and unsecured senior debt | $1,520 | $1,174 | $1,