Kohl’s trims full-year 2025 sales outlook as Q3 earnings weaken

Core Insights - US-based omnichannel retailer Kohl's has revised its full-year 2025 performance expectations downward due to weaker sales and earnings reported in Q3 [1][2] - The company anticipates a decline in net sales for fiscal 2025 between 3.5% and 4%, with comparable sales projected to fall between 2.5% and 3% [1][4] Financial Performance - For Q3 ended November 1, 2025, Kohl's reported net sales of $3.4 billion, a decrease of 2.8% year-on-year, and comparable sales declined by 1.7% [2] - Net income for Q3 fell to $8 million, or $0.07 per diluted share, compared to $22 million, or $0.20 per diluted share, in Q3 2024 [2] - Gross margin as a percentage of net sales increased to 39.6%, up 51 basis points year-on-year, while operating income for the quarter was $73 million, down from $98 million a year earlier [2][5] Inventory and Dividends - Quarter-end inventory stood at $3.9 billion, which is 5% lower than the same point last year [3] - Kohl's declared a quarterly cash dividend of $0.125 per share [3] Year-to-Date Performance - For the first nine months of fiscal 2025, net sales totaled $9.8 billion, a decrease of 4% from the previous year, with comparable sales down 3.2% [4] - Gross margin for the nine-month period was 39.8%, an increase of 39 basis points year-on-year, and operating income rose to $412 million from $307 million a year earlier [5] - Net income for the nine-month period increased to $147 million, or $1.30 per diluted share, compared to $61 million, or $0.55 per diluted share, in the same period of the previous year [5]