Kohl’s(US:KSS)2025-11-25 12:00Financial Performance - Net sales for Q3 2025 decreased by 2.8% year-over-year to $3.4 billion, with comparable sales down 1.7%[5] - Gross margin increased by 51 basis points to 39.6% of net sales[6] - SG&A expenses decreased by 2.1% year-over-year to $1.3 billion, representing 35.3% of total revenue, an increase of 55 basis points[6] - Operating income for Q3 2025 was $73 million, down from $98 million in the prior year, with an adjusted operating income of $77 million[6] - Net income for Q3 2025 was $8 million, or $0.07 per diluted share, compared to $22 million, or $0.20 per diluted share, in the prior year[6] - Net income for the nine months ended November 1, 2025, was $147 million, a significant increase from $61 million in the same period last year, reflecting a growth of 141%[20] Cash Flow and Liquidity - Cash flow from operating activities was $124 million, a significant improvement from a use of $195 million in the prior year[6] - Net cash provided by operating activities rose to $630 million for the nine months ended November 1, 2025, compared to $52 million in the prior year, indicating a substantial improvement[20] - Cash and cash equivalents at the end of the period were $144 million, down from $174 million, a decrease of 17.24%[20] - The company reported a net cash used in investing activities of $269 million, compared to $363 million in the previous year, showing a reduction of 25.93%[20] - The company had a net cash outflow from financing activities of $351 million, contrasting with a net inflow of $302 million in the prior year[20] Inventory and Assets - Inventory decreased by 5% year-over-year to $3.9 billion[6] - Merchandise inventories decreased from $4,099 million to $3,895 million, a reduction of 4.97% year-over-year[18] - Total assets decreased from $15,054 million in November 2, 2024, to $14,144 million in November 1, 2025, representing a decline of 6.05%[18] - Total current liabilities decreased from $4,393 million to $3,307 million, a decline of 24.74%[18] - Long-term debt increased from $1,174 million to $1,522 million, an increase of 29.6%[18] Dividends and Financial Outlook - Dividends paid decreased significantly from $166 million to $42 million, a reduction of 74.7%[20] - The company raised its full-year 2025 financial outlook following the Q3 results[5] - For the full year 2025, Kohl's expects net sales to decrease by 3.5% to 4% and adjusted diluted EPS in the range of $1.25 to $1.45[11] Leadership Changes - Kohl's Board of Directors appointed Michael J. Bender as CEO effective immediately[4]