Kohl's Q1 Loss Narrower Than Estimates, Sales Decline 4% Y/Y

Core Insights - Kohl's Corporation reported a first-quarter fiscal 2025 loss per share of 13 cents, which was better than the Zacks Consensus Estimate of a loss of 22 cents and improved from a loss of 24 cents in the prior year [1] - Total revenues for the quarter were $3,233 million, down from $3,382 million in the same quarter last year, but exceeded the Zacks Consensus Estimate of $3,176 million [1] - Comparable sales declined by 3.9% year over year, which was better than the expected decrease of 6% [1] Financial Performance - Gross margin increased by 37 basis points to 39.9%, surpassing the expected increase of 10 basis points [2] - SG&A expenses decreased by 5.2% to $1,164 million, and as a percentage of total revenues, they fell by 32 basis points to 36% [2] - Operating income rose to $60 million from $43 million in the previous year, with an operating income margin expansion of 58 basis points to 1.9% [2] Financial Health - At the end of the quarter, Kohl's had cash and cash equivalents of $153 million and shareholders' equity of $3,779 million [3] - The company reported net cash used in operating activities of $92 million for the three months ending May 3, 2025 [3] - Kohl's expects capital expenditures to be between $400 million and $425 million for fiscal 2025 [3] Future Outlook - For fiscal 2025, Kohl's anticipates a net sales decline of 5-7% and comparable sales to decrease by 4-6% [4] - The expected operating margin for the year is projected to range from 2.2% to 2.6% [4] - Full-year earnings per share are forecasted to be between 10 cents and 60 cents [4]