Kohl’s FY25 profit rises despite lower net sales

Core Insights - Kohl's Corporation reported an increase in operating and net income for fiscal year 2025, despite a decline in net sales [1][2] Financial Performance - For the fiscal year ending January 31, 2026, net sales decreased by 4% year-on-year to $14.77 billion, with comparable sales down 3.1% [1] - Operating income for FY25 was $624 million, up from $433 million in the previous fiscal year [1] - Net income reached $272 million, or $2.38 per diluted share, compared to $109 million, or $0.98 per diluted share in the prior year [2] - In Q4, net sales fell by 3.9% year-on-year to $4.97 billion, while comparable sales declined by 2.8% [2] - Operating income for Q4 increased to $212 million from $126 million in the same quarter of the previous year [2] - Net income for Q4 was $125 million, or $1.07 per diluted share, up from $48 million, or $0.43 per diluted share in the prior year's quarter [3] Strategic Outlook - CEO Michael Bender stated that the company is in a stronger position at the end of FY25, focusing on resetting its foundation [3] - The company aims to stabilize its business and enhance operational capabilities for future growth [4] - For FY26, Kohl's expects net sales and comparable sales to range from a 2% decline to flat year-on-year [4] - Adjusted operating margin is projected to be between 2.8% and 3.4%, with adjusted diluted earnings per share forecasted at $1 to $1.60 [4] Capital Allocation - Capital expenditure for the year is anticipated to be around $350 million to $400 million [5] - The board of directors declared a quarterly cash dividend of $0.125 per share, payable on April 1, 2026 [5]