Kohl's CFO Warns Core Shoppers Are Being 'Choiceful' - Kohl's (NYSE:KSS)

Financial Performance - The company reported fourth-quarter adjusted earnings per share of $1.07, exceeding the analyst consensus estimate of 85 cents [1] - Quarterly sales reached $5.173 billion, surpassing the Street view of $5.032 billion [1] - Fourth quarter net sales decreased by 3.9%, while comparable sales fell by 2.8% [1] Margins and Income - Quarterly gross margin as a percentage of net sales was 33.1%, an increase of 25 basis points year over year [2] - Operating income was $212 million, compared to $126 million in the prior year, with an operating margin of 4.1%, up 176 basis points year over year [2] Cash Position - The company exited the quarter with cash and equivalents worth $674 million [2] Dividend Declaration - On February 25, 2026, the board declared a quarterly cash dividend of 12.5 cents per share, payable on April 1, 2026 [3] Outlook for Fiscal 2026 - The company expects net sales and comparable sales to decline by 2% to remain flat year over year [4] - Projected adjusted operating margin is between 2.8% to 3.4%, with capital expenditures estimated at $350 million to $400 million [4] - Forecasted adjusted earnings per share for fiscal 2026 is between $1.00 to $1.60, compared to the analyst estimate of $1.39 [4] - Expected sales for fiscal 2026 range from $15.216 billion to $15.527 billion, versus the $14.845 billion consensus estimate [4] Management Commentary - The CFO expressed cautious optimism about sales building throughout the year, particularly in spring seasonal and year-round businesses [5] - The company remains aware of significant macroeconomic headwinds affecting low- to middle-income consumers' discretionary spending [6] - The management is balancing its outlook while considering the broader operating environment [6] Stock Performance - Kohl's shares were up 0.88% at $14.93 at the time of publication [7]