Kohl’s (NYSE: KSS) Q1 2026 loss, leverage and 2026 guidance detailed
Rhea-AI Filing Summary
Kohl’s Corporation reported first quarter 2026 results and affirmed its full-year 2026 outlook. Total revenue was $3.167 billion, with net sales down 1.7% and comparable sales down 1.1% versus the prior-year quarter. The company posted an operating income of $46 million and a net loss of $14 million, or loss of $0.13 per diluted share.
Management highlighted flat gross margin at 39.9% and a 1.6% decline in SG&A expenses, reflecting cost discipline. Kohl’s ended the quarter with $429 million in cash and cash equivalents and $1.387 billion of long-term debt, and reported rolling 12‑month adjusted EBITDA of $1.195 billion. Free cash flow for the quarter was negative $158 million, consistent with seasonal working capital use.
For full-year 2026, Kohl’s continues to expect net sales and comparable sales to be between flat and (2%) versus 2025, adjusted operating margin of 2.8% to 3.4%, and adjusted diluted EPS of $1.00 to $1.60. The company plans $350–$400 million of capital expenditures and has an annual dividend target of $0.50 per share, including a declared quarterly dividend of $0.125 payable on June 24, 2026.
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Insights
Kohl’s delivered slightly lower sales and a small loss but reaffirmed 2026 guidance and maintained balance sheet flexibility.
Kohl’s generated $3.167 billion in Q1 2026 revenue, with net sales down 1.7% and comparable sales down 1.1%. Despite modest top-line pressure, gross margin held at 39.9% and SG&A fell 1.6%, supporting an operating income of $46 million.
The company reported a net loss of $14 million, or $0.13 per diluted share, and negative free cash flow of $158 million, typical for seasonal inventory builds. Cash stood at $429 million with long-term debt of $1.387 billion, and rolling 12‑month adjusted EBITDA reached $1.195 billion, implying an adjusted leverage ratio of roughly 2.2% based on disclosed calculations.
Kohl’s reaffirmed 2026 guidance, targeting net and comparable sales between flat and (2%), adjusted operating margin of 2.8%–3.4%, and adjusted EPS of $1.00–$1.60. Capital allocation plans include $350–$400 million of capex, an annual dividend of $0.50 per share, and continued opportunistic debt repurchases such as the Q1 redemption of $50 million of debt at a $9 million discount.
8-K Event Classification
Key Figures
Key Terms
Comparable Sales financial
Adjusted EBITDA financial
Free Cash Flow financial
Non-GAAP financial measures financial
Leverage Ratio financial
Earnings Snapshot
For 2026, Kohl’s expects net and comparable sales flat to (2%) vs 2025, adjusted operating margin of 2.8%–3.4%, and adjusted diluted EPS of $1.00–$1.60.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Kohl’s (KSS) perform financially in Q1 2026?
Kohl’s reported Q1 2026 total revenue of $3.167 billion, with net sales down 1.7% and comparable sales down 1.1% versus Q1 2025. The company generated operating income of $46 million but recorded a net loss of $14 million, or $0.13 per diluted share.
What is Kohl’s (KSS) 2026 full-year financial outlook?
For 2026, Kohl’s expects net sales and comparable sales to range from flat to (2%) versus 2025. The company projects adjusted operating margin of 2.8%–3.4% and adjusted diluted EPS of $1.00–$1.60, reflecting modest profitability targets under its current strategy.
What dividend is Kohl’s (KSS) paying in 2026?
The Board declared a quarterly cash dividend of $0.125 per share, payable on June 24, 2026 to shareholders of record on June 10, 2026. Kohl’s also indicates an annual cash dividend target of $0.50 per share, supporting ongoing capital returns.
How strong is Kohl’s (KSS) balance sheet after Q1 2026?
At May 2, 2026, Kohl’s held $429 million in cash and cash equivalents and $1.387 billion of long-term debt. The company reported rolling 12‑month adjusted EBITDA of $1.195 billion and disclosed an adjusted leverage ratio of 2.2x, indicating moderate balance sheet leverage.
What were Kohl’s (KSS) cash flow and free cash flow in Q1 2026?
Net cash used in operating activities was $74 million in Q1 2026, with capital expenditures of $84 million. This resulted in free cash flow of $(158) million and adjusted free cash flow of $(184) million, reflecting seasonal working capital and investment spending.
How is Kohl’s (KSS) managing debt and leverage in 2026?
In Q1 2026, Kohl’s repurchased $50 million of debt, realizing a $9 million discount. Using adjusted lease assumptions, the company reports a net debt plus leases to EBITDAR leverage ratio of 2.2x, down from an unadjusted 4.2x, and plans further opportunistic deleveraging.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
On May 28, 2026, Kohl’s Corporation (the “Company”) issued a press release reporting its earnings for the quarter ended May 2, 2026 and affirmed earnings guidance for fiscal 2026. A copy of the press release is attached as Exhibit 99.1 and incorporated by reference herein. A copy of the presentation materials for the May 28, 2026 quarterly earnings conference call is attached as Exhibit 99.2 and incorporated by reference herein.
| Item 7.01 | Regulation FD Disclosure. |
See Item 2.02.
The information in Items 2.02 and 7.01, including the exhibits attached hereto, is furnished solely pursuant to Items 2.02 and 7.01 of Form 8-K. Consequently, such information is not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. Further, the information in Items 2.02 and 7.01, including the exhibits, shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933.
| Item 8.01 | Other Events. |
As previously announced, on May 20, 2026, the Board of Directors of the Company declared a quarterly cash dividend of $0.125 per share. The dividend will be paid on June 24, 2026, to all shareholders of record at the close of business on June 10, 2026.
Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Measures
This current report on Form 8-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “could,” “intends,” “anticipates,” “estimates,” “plans,” or similar expressions to identify forward-looking statements. Forward-looking statements include, but are not limited to, the information under “2026 Financial and Capital Allocation Outlook,” “2026 Outlook,” comments about Kohl’s adequacy of capital resources, statements regarding our 2026 areas of focus and future initiatives, and statements regarding the impact of macroeconomic events and our response to such events, including tariffs. Such statements are based on current assumptions, expectations, and beliefs and are subject to certain risks and uncertainties, which could cause the Company’s actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company’s Annual Report on Form 10-K, which are expressly incorporated herein by reference, and other factors as may periodically be described in the Company’s filings with the SEC. Forward-looking statements relate to the date initially made, and the Company undertakes no obligation to update them.
The attached press release and presentation materials contain certain financial measures that are not prepared in accordance with generally accepted accounting principles (GAAP), including adjusted EBITDA, adjusted EBITDAR, our leverage ratio (expressed as net debt + leases / EBITDAR), free cash flow, and adjusted free cash flow. These non-GAAP financial measures are provided as additional insight into our operational performance and do not purport to be substitutes for, or superior to, operating income, net income, total debt and lease liabilities as reported on the balance sheet, or operating cash flow as measures of operating performance or liquidity. We believe these adjusted measures are useful, as they are more representative of our core business, enhance comparability across reporting periods and to industry peers, and align with the measures used by management to evaluate the Company’s performance. We caution investors that non-GAAP measures should not be viewed in isolation and should be evaluated in addition to, and not as an alternative for, our results reported in accordance with GAAP. Because companies may use different calculation methods, these measures may not be comparable to other similarly titled measures reported by other companies. A reconciliation of each referenced non-GAAP measure to the most directly comparable GAAP measure is provided in the presentation materials attached hereto as Exhibit 99.2.
The Company provides adjusted operating margin and adjusted diluted earnings per share on a non-GAAP basis and does not provide a reconciliation of the Company’s forward looking guidance to the most directly comparable GAAP financial measures because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.
| Item 9.01 | Financial Statements and Exhibits. |
| Exhibit |
Description | |
| 99.1 | Press Release dated May 28, 2026 | |
| 99.2 | Presentation Materials for May 28, 2026 Quarterly Earnings Conference Call | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KOHL’S CORPORATION | ||||||
| Date: May 28, 2026 | By: | /s/ Jennifer Kent | ||||
| Jennifer Kent Senior Executive Vice President, Chief Legal Officer and Corporate Secretary | ||||||
Exhibit 99.1
Kohl’s Reports First Quarter Fiscal 2026 Financial Results
MENOMONEE FALLS, Wis.—(BUSINESS WIRE)—May 28, 2026— Kohl’s Corporation (NYSE: KSS) today reported results for the first quarter ended May 2, 2026.
| • | Net sales decreased 1.7% and comparable sales decreased 1.1% |
| • | Gross margin increased 4 basis points |
| • | Diluted loss per share of ($0.13) |
| • | Affirms full year 2026 financial outlook |
Michael Bender, Kohl’s Chief Executive Officer, said “We are pleased with our start to 2026. Our key initiatives continue to drive progressive improvements to the business, resulting in our best comparable sales performance in over four years. In addition, we continue to manage the business with great discipline leading to strong expense management, cleaner inventories, and an improved balance sheet.”
“Moving forward, we remain committed to delivering more value and a better experience to our customers. I would like to extend my sincere gratitude to all of our Kohl’s associates for their dedication and determination to execute against our initiatives,” Bender continued.
First Quarter 2026 Results
Comparisons refer to the 13-week period ended May 2, 2026 versus the 13-week period ended May 3, 2025
| • | Net sales decreased 1.7% year-over-year, to $3 billion, with comparable sales down 1.1%. |
| • | Gross margin as a percentage of net sales was 39.9%, an increase of 4 basis points year-over-year. |
| • | Selling, general & administrative (SG&A) expenses decreased 1.6% year-over-year, to $1.1 billion. As a percentage of total revenue, SG&A expenses were 36.2%, an increase of 15 basis points year-over-year. |
| • | Operating income was $46 million compared to $60 million in the prior year. As a percentage of total revenue, operating income was 1.4%, a decrease of 41 basis points year-over-year. |
| • | Net loss was $14 million, or ($0.13) per diluted share. This compares to net loss of $15 million, or ($0.13) per diluted share in the prior year. |
| • | Inventory was $2.9 billion, a decrease of 8% year-over-year. |
| • | Operating cash flow was a use of $74 million. |
| • | Borrowings under revolving credit facility were $0, a decrease of $545 million year-over-year. |
2026 Financial and Capital Allocation Outlook
For the full year 2026, the Company continues to expect the following:
| • | Net sales and Comparable sales: A decrease of (2%) to flat |
| • | Adjusted Operating margin: In the range of 2.8% to 3.4% (a) |
| • | Adjusted Diluted EPS: In the range of $1.00 to $1.60 (a) |
| • | Capital Expenditures: In the range of $350 million to $400 million |
| • | Dividend: On May 20, 2026, Kohl’s Board of Directors declared a quarterly cash dividend on the Company’s common stock of $0.125 per share. The dividend is payable June 24, 2026 to shareholders of record at the close of business on June 10, 2026. |
| (a) | Non-GAAP financial measures: The Company provides adjusted operating margin and adjusted diluted earnings per share on a non-GAAP basis and does not provide a reconciliation of the Company’s forward looking guidance to the most directly comparable GAAP financial measures because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. |
First Quarter 2026 Earnings Conference Call
Kohl’s will host its quarterly earnings conference call at 9:00 am ET on May 28, 2026. A webcast of the conference call and the related presentation materials will be available via the Company’s web site at investors.kohls.com, both live and after the call.
Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “anticipates,” “plans,” or similar expressions to identify forward-looking statements. Forward-looking statements include the information under “2026 Financial and Capital Allocation
Outlook.” Such statements are subject to certain risks and uncertainties, which could cause the Company’s actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company’s Annual Report on Form 10-K, which are expressly incorporated herein by reference, and other factors as may periodically be described in the Company’s filings with the SEC. Forward-looking statements relate to the date initially made, and the Company undertakes no obligation to update them.
About Kohl’s
Kohl’s (NYSE: KSS) is a leading omnichannel retailer built on a foundation that combines great brands, incredible value and convenience for our customers. Kohl’s is uniquely positioned to deliver against its long-term strategy and its purpose to take care of families’ realest moments. Kohl’s serves millions of families in its more than 1,100 stores in 49 states, online at Kohls.com, and through the Kohl’s App. With a large national footprint, Kohl’s is committed to making a positive impact in the communities it serves. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com.
Contacts
Investor Relations:
Trevor Novotny, (262) 703-1617, trevor.novotny@kohls.com
Media:
Jen Johnson, (262) 703-5241, jen.johnson@kohls.com
KOHL’S CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended | ||||||||
| (Dollars in Millions, Except per Share Data) |
May 2, 2026 | May 3, 2025 | ||||||
| Net sales |
$ | 2,998 | $ | 3,049 | ||||
| Other revenue |
169 | 184 | ||||||
|
|
|
|
|
|||||
| Total revenue |
3,167 | 3,233 | ||||||
| Cost of merchandise sold |
1,802 | 1,834 | ||||||
| Gross margin rate |
39.9 | % | 39.9 | % | ||||
| Operating expenses: |
||||||||
| Selling, general, and administrative |
1,145 | 1,164 | ||||||
| As a percent of total revenue |
36.2 | % | 36.0 | % | ||||
| Depreciation and amortization |
174 | 175 | ||||||
|
|
|
|
|
|||||
| Operating income |
46 | 60 | ||||||
| Interest expense, net |
63 | 76 | ||||||
|
|
|
|
|
|||||
| Loss before income taxes |
(17 | ) | (16 | ) | ||||
| Benefit for income taxes |
(3 | ) | (1 | ) | ||||
|
|
|
|
|
|||||
| Net loss |
$ | (14 | ) | $ | (15 | ) | ||
|
|
|
|
|
|||||
| Average number of shares: |
||||||||
| Basic |
112 | 111 | ||||||
| Diluted |
112 | 111 | ||||||
| Loss per share: |
||||||||
| Basic |
$ | (0.13 | ) | $ | (0.13 | ) | ||
| Diluted |
$ | (0.13 | ) | $ | (0.13 | ) | ||
KOHL’S CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (Dollars in Millions) |
May 2, 2026 | May 3, 2025 | ||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 429 | $ | 153 | ||||
| Merchandise inventories |
2,897 | 3,137 | ||||||
| Other |
326 | 290 | ||||||
|
|
|
|
|
|||||
| Total current assets |
3,652 | 3,580 | ||||||
| Property and equipment, net |
6,779 | 7,209 | ||||||
| Operating leases |
2,318 | 2,374 | ||||||
| Other assets |
416 | 476 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 13,165 | $ | 13,639 | ||||
|
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|
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|||||
| Liabilities and Shareholders’ Equity |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 1,248 | $ | 1,026 | ||||
| Accrued liabilities |
1,033 | 1,177 | ||||||
| Borrowings under revolving credit facility |
— | 545 | ||||||
| Current portion of: |
||||||||
| Long-term debt |
— | 353 | ||||||
| Finance leases and financing obligations |
89 | 80 | ||||||
| Operating leases |
95 | 99 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
2,465 | 3,280 | ||||||
| Long-term debt |
1,387 | 1,174 | ||||||
| Finance leases and financing obligations |
2,338 | 2,433 | ||||||
| Operating leases |
2,624 | 2,687 | ||||||
| Deferred income taxes |
88 | 27 | ||||||
| Other long-term liabilities |
239 | 259 | ||||||
| Shareholders’ equity: |
4,024 | 3,779 | ||||||
|
|
|
|
|
|||||
| Total liabilities and shareholders’ equity |
$ | 13,165 | $ | 13,639 | ||||
|
|
|
|
|
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KOHL’S CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended | ||||||||
| (Dollars in Millions) |
May 2, 2026 | May 3, 2025 | ||||||
| Operating activities |
||||||||
| Net loss |
$ | (14 | ) | $ | (15 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
| Depreciation and amortization |
174 | 175 | ||||||
| Share-based compensation |
9 | 9 | ||||||
| Deferred income taxes |
(2 | ) | (2 | ) | ||||
| Non-cash lease expense |
22 | 21 | ||||||
| Other non-cash items |
(6 | ) | 2 | |||||
| Changes in operating assets and liabilities: |
||||||||
| Merchandise inventories |
(151 | ) | (191 | ) | ||||
| Other current and long-term assets |
(26 | ) | 31 | |||||
| Accounts payable |
77 | (16 | ) | |||||
| Accrued and other long-term liabilities |
(128 | ) | (83 | ) | ||||
| Operating lease liabilities |
(29 | ) | (23 | ) | ||||
|
|
|
|
|
|||||
| Net cash used in operating activities |
(74 | ) | (92 | ) | ||||
|
|
|
|
|
|||||
| Investing activities |
||||||||
| Acquisition of property and equipment |
(84 | ) | (110 | ) | ||||
| Proceeds from sale of property and equipment |
— | 2 | ||||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(84 | ) | (108 | ) | ||||
|
|
|
|
|
|||||
| Financing activities |
||||||||
| Net borrowings under revolving credit facility |
— | 255 | ||||||
| Shares withheld for taxes on vested restricted shares |
(6 | ) | (4 | ) | ||||
| Dividends paid |
(14 | ) | (14 | ) | ||||
| Repayment of long-term borrowings |
(50 | ) | — | |||||
| Discount on redemption of debt |
9 | — | ||||||
| Finance lease and financing obligation payments |
(26 | ) | (21 | ) | ||||
| Proceeds from financing obligations |
— | 3 | ||||||
|
|
|
|
|
|||||
| Net cash (used in) provided by financing activities |
(87 | ) | 219 | |||||
|
|
|
|
|
|||||
| Net (decrease) increase in cash and cash equivalents |
(245 | ) | 19 | |||||
| Cash and cash equivalents at beginning of period |
674 | 134 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents at end of period |
$ | 429 | $ | 153 | ||||
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Exhibit 99.2 Q1 Results Presentation May 28, 2026 1
Cautionary Statement Regarding Forward-Looking Information This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “anticipates,” “plans,” or similar expressions to identify forward-looking statements. Forward-looking statements include, but are not limited to the information under 2026 Outlook, comments about Kohl's adequacy of capital resources, statements regarding our 2026 areas of focus and future initiatives, and statements regarding the impact of macroeconomic events and our response to such events, including tariffs. Such statements are subject to certain risks and uncertainties, which could cause the Company's actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company’s Annual Report on Form 10-K, which are expressly incorporated herein by reference and other factors as may periodically be described in the Company’s filings with the SEC. Forward-looking statements relate to the date initially made, and Kohl’s undertakes no obligation to update them. Non-GAAP Financial Measures This presentation contains certain financial measures that are not prepared in accordance with generally accepted accounting principles (GAAP), including adjusted EBITDA, adjusted EBITDAR, our leverage ratio (expressed as net debt + leases / EBITDAR), and free cash flow and adjusted free cash flow. These non-GAAP financial measures are provided as additional insight into our operational performance and do not purport to be substitutes for, or superior to operating income, net income, total debt and lease liabilities as reported on the balance sheet, or operating cash flow as measures of operating performance or liquidity. We believe these adjusted measures are useful, as they are more representative of our core business, enhance comparability across reporting periods and to industry peers, and align with the measures used by management to evaluate the Company’s performance. We caution investors that non-GAAP measures should not be viewed in isolation and should be evaluated in addition to, and not as an alternative for, our results reported in accordance with GAAP. Because companies may use different calculation methods, these measures may not be comparable to other similarly titled measures reported by other companies. A reconciliation of each non-GAAP measure to the most directly comparable GAAP measure is included in this presentation. 2
Table of Contents 2026 Key Initiatives 6 Q1 2026 Results 10 2026 Outlook 15 3
“We are pleased with our start to 2026. Our key initiatives continue to drive progressive improvements to the business, resulting in our best comparable sales performance in over four years. In addition, we continue to manage the business with great discipline leading to strong expense management, cleaner inventories, and an improved balance sheet. “Moving forward, we remain committed to delivering more value and a better experience to our customers. I would like to extend my sincere gratitude to all of our Kohl’s associates for their dedication and determination to execute against our initiatives.” CHIEF EXECUTIVE OFFICER 4
Kohl's is building on a solid foundation Convenient Nationwide Great Product from Top Brands Omni-Channel Reach 1,151 Stores Largest department store 80% (1) chain in America of Americans live within 15 miles of a Kohl’s store 20M+ Delivering Great Value Active App Users 1,100+ (1) Sephora @ Kohl’s 60M+ 30M+ Customers Loyalty 26% Members Digital Penetration All figures as of Q1 2026 unless otherwise noted 5 (1) Based on number of locations as of Q1 2026
2026 KEY INITIATIVES 6
Offer a more curated, balanced assortment KEY SIGNS OF PROGRESS FUTURE OPPORTUNITIES Delivered flat to slightly positive comps across Women’s, Kid’s, Home, Men’s and Accessories businesses • Making edits to improve assortment clarity and purpose • Introducing Brixton to 300 stores in Q2 • Juniors business grew by 10% led by strength from So. Footwear • Strength across all categories in key proprietary brands such as FLX and Tek Gear • Innovation and newness from Active footwear to set for • Impulse business continues to accelerate, running up over 50% in Q1 Back to School season • Strength in Jewelry business led by our fashion and bridge jewelry Sephora • Innovation and newness in Home resonating well with products from Ninja & Shark • Building on strength from fragrance & haircare categories • Expanding MAC to all doors this Fall • Delivering newness in skincare with trending brands like Beauty of Joseon, Aestura, and Biodance 7
Reestablish Kohl’s as a leader in value and quality Unlock the power of proprietary brands and deliver a more consistent, competitive value • Proprietary brands are key component of value proposition, offering customers quality products at affordable opening price points • In Q1, Proprietary Brands delivered a 6% comp • Continue to support awareness and momentum of proprietary brands through enhanced in-store experience and ‘By Kohl’s’ marketing campaign • Introduced Impulse, Deal Bar, and Toy Tower to offer products focused on value 8
Deliver a Frictionless Experience Across Our Omni-Channel Platforms Restore Trip Assurance • Establishing trip assurance by investing into depth across apparel categories and reducing choice counts and redundancy to deliver more clarity, consistency, and purpose to assortment • Better in-stocks for key items improves omni-channel experience by providing optionality for speed and delivery of products Enhance Omni-Channel Experience • Launched a new gift finder to website in May powered by AI through Google Gemini to improve product discovery and customer engagement, with further opportunity to support conversion and reduce friction across the shopping journey • Enhancing how customers discover and navigate assortments through more curated digital experiences, improved storytelling, product spotlights, and brand-level filters • Continue to grow Digital Marketplace by expanding assortment into white space offerings to categories that complement core offering 9
Q1 2026 RESULTS 10
Q1 2026 Results Key Financial Results • Q1 Net Sales declined (1.7%) versus Q1 2025 and Comparable Sales decreased (1.1%) • Gross Margin expanded by 4 basis points versus last year driven by higher proprietary brand penetration partially offset by increased cost of shipping driven by a higher digital penetration • SG&A expense declined (1.6%) from collective savings in our credit and corporate expenses • Operating Income of $46 million and Net Loss of ($14 million) or Loss of ($0.13) per Diluted Share 11 11
(1.6%) Q1 2026 Gross Margin & SG&A Expense Performance Gross Margin SG&A Expense Deleveraged (15 bps) vs Q1 2025 Increased 4 bps vs Q1 2025 39.9% 39.9% $1,164M $1,145M % Total Revenue 36.0% 36.2% Q1 2025 Q1 2026 Q1 2025 Q1 2026 Q1 2026 Gross Margin Takeaways Q1 2026 SG&A Takeaways • Increased proprietary brand penetration • Collective savings in our credit and corporate expenses • Partially offset by cost of shipping headwinds with higher digital penetration 12
Adjusted Leverage Kohl’s reset leases on the balance sheet following the investment to roll out Sephora to all of our Stores (1) Net Debt + Leases to EBITDAR Leverage Rolling 12 months as of Q1 2026 • Current Balance Sheet / Lease Accounting is inflating our (Dollars in Millions) Unadjusted Adjusted Leverage Ratio (1) Adjusted EBITDA $ 1,195 $ 1,195 Rent Expense 272 272 Adjusted EBITDAR 1,467 1,467 • The balance sheet lease liability of $5.1B currently reflects the lease Current portion of long-term Debt 0 0 periods probable to be exercised, Borrowings under revolving credit facility 0 0 which averages 18 years Long-term Debt 1,387 1,387 Debt 1,387 1,387 • The lease payments for periods Less: Cash & Cash Equivalents (429) (429) actually exercised, is $2.3B, which Net Debt 958 958 averages 4 years Net Debt / EBITDA Leverage 0.8x 0.8x Contractually obligated payments for Finance & Financing Obligation Leases Current and long-term Fin Leases & Fin Obs 2,427 1,129 • When adjusting for the actual lease Contractually obligated payments for Current and long-term Operating Leases 2,719 1,153 Operating Leases periods exercised Kohl's Leverage Net Debt + Leases $ 6,104 $ 3,240 Ratio is reduced to 2.2x, down from the Unadjusted Ratio of 4.2x Net Debt + Leases / EBITDAR Leverage 4.2x 2.2x 13 (1) Adjusted EBITDA, Adjusted EBITDAR, and our Leverage Ratio (expressed as Net Debt + Leases / EBITDAR) are non-GAAP financial measures of liquidity. Refer to the Appendix for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure.
Three Months Ended Consolidated Statement of Operations (Dollars in Millions) May 2, 2026 May 3, 2025 Net Sales $ 2,998 $ 3,049 Total Revenue 3,167 3,233 Gross Margin Rate 39.9% 39.9% SG&A 1,145 1,164 Depreciation 174 175 Operating Income 46 60 Interest Expense, net 63 76 Benefit for Income Taxes (3) (1) Net Loss (14) (15) Diluted Loss per Share ($0.13) ($0.13) Key Balance Sheet Items Q1 2026 (Dollars in Millions) May 2, 2026 May 3, 2025 Cash and Cash Equivalents $ 429 $ 153 Key Metrics Merchandise Inventories 2,897 3,137 Accounts Payable 1,248 1,026 Borrowings under revolving credit facility 0 545 Current portion of Long-term debt 0 353 Long-term Debt 1,387 1,174 May 2, 2026 May 3, 2025 Key Cash Flow items (Dollars in Millions) Three Months Ended Three Months Ended Net cash used in operating activities $ (74) $ (92) Acquisition of property and equipment (84) (110) Free Cash Flow (158) (202) Finance lease and Financing Obligations (26) (21) Proceeds from Financing Obligations 0 3 Adjusted Free Cash Flow (Non-GAAP)1 (184) (220) 14 (1) Free Cash Flow and Adjusted Free Cash Flow are non-GAAP financial measures. Reconciliation for Free Cash Flow and Adjusted Free Cash Flow is above.
2026 OUTLOOK 15
Affirms 2026 Financial Outlook METRIC FULL YEAR GUIDANCE Net Sales Flat to (2%) vs. 2025 Comp Sales Flat to (2%) Adjusted 2.8% to 3.4% 1 Operating Margin Adjusted $1.00 to $1.60 1 Diluted EPS Capital Allocation Outlook • Capex: $350M to $400M • Dividend: $0.125 dividend payable on June 24, 2026 (1) The Company provides adjusted operating margin and adjusted diluted earnings per share on a non-GAAP basis and does not provide a reconciliation of the Company’s forward looking guidance to the most directly comparable GAAP financial measures because of the 16 inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.
Capital allocation priorities support our goals of optimizing balance sheet flexibility Invest in the Business Continue to prioritize our investment in the business with $350 million to $400 million of Capital Expenditures in 2026 Optimizing Return of Cash We remain committed to returning capital to shareholders, with an annual cash dividend of $0.50 per share that supports continued balance sheet flexibility Reduce Debt In Q1, we repurchased $50 million of debt at a discount of $9 million. We will continue to evaluate the market and make opportunistic debt repurchases. Share Repurchases As we continue to solidify our balance sheet and improve our business results, we will look at implementing a share buyback program in the future 17
APPENDIX 18
Reconciliation 52 Weeks Ended Adjusted EBITDA May 2, 2026 (Dollars in Millions) Net Income (GAAP) $ 272 Provision for income taxes 63 Interest expense, net 275 Depreciation and amortization 699 (Gain) on legal settlement (129) Impairments, store closing and other costs 15 Adjusted EBITDA (Non-GAAP) $ 1,195 19
