Kohl’s reported its fourth-quarter earnings on March 11, 2025, in San Rafael, California, revealing a significant earnings and revenue beat. However, the retailer’s stock plummeted over 15% in premarket trading due to much worse-than-expected guidance for the upcoming year.
- Worker pushes cart outside Kohl's store.
- Kohl's stock fell over 15% after guidance.
- 2025 revenue expected to decline 5% to 7%.
- Earnings per share missed Wall Street estimates.
- Kohl's CEO change amid significant turmoil.
- Net income dropped from $186 million to $48 million.
Kohl’s has faced considerable challenges recently, including leadership changes and workforce reductions. The company appointed Ashley Buchanan as CEO, effective January 15, 2025, replacing Tom Kingsbury. In January, Kohl’s announced a 10% reduction in its corporate workforce and plans to close 27 underperforming stores by April.
For the fourth quarter, Kohl’s reported net sales of $5.18 billion, down from $5.71 billion in the same period the previous year. The full-year sales for 2024 were $15.39 billion, a decrease from $16.59 billion in 2023. The decline in sales was influenced by the fact that both the fourth quarter and full year of fiscal 2023 had one additional week compared to their 2024 counterparts.
- Earnings per share: 95 cents adjusted vs. 73 cents expected
- Revenue: $5.18 billion vs. $5.15 billion expected
Kohl’s anticipates a challenging 2025, projecting a revenue decline of 5% to 7%, compared to Wall Street’s estimate of a 1.6% decrease. The company expects comparable sales to fall between 4% and 6%, while analysts had predicted a smaller drop of 0.9%. Additionally, Kohl’s earnings per share guidance of 10 to 60 cents is significantly lower than the midpoint estimate of $1.23.
In summary, while Kohl’s fourth-quarter earnings surpassed expectations, the company’s stock decline reflects investor concerns over its bleak guidance for 2025, amid broader economic uncertainties affecting the retail sector.
