The news: Kohl’s topped Q3 expectations and raised its outlook, crediting stronger product assortments, better value through promotions, and improved in-store and digital experiences for helping it win back customers.
- Net sales fell 2.8% to $3.41 billion for the quarter ended November 1, but they topped the $3.32 billion analysts expected.
- Comparable-store sales dropped 1.7%, better than the 4.2% fall in Q2 2025, and 3.9% decline in Q1.
- Adjusted profit was 10 cents a share, above a loss of 20 cents expected by analysts, Reuters reported, citing LSEG data.
The retailer said it now expects full-year sales to fall 3.5% to 4%, a narrower decline than its prior view of a 5% to 6% drop. It raised its per-share profit forecast to $1.25 to $1.45 for the year, compared with an August outlook of 50 cents to 80 cents.
Kohl’s has been working to address challenges that have dragged down its performance—including merchandising strategies that alienated its core customers and softness in key categories—amid a broader industry effort to lure shoppers back into department stores.
New CEO eyes turnaround: On Monday, the company named interim CEO Michael Bender to the job permanently. Bender, the third person to hold that role in roughly three years, said the chain would sharpen its product assortment, offer more proprietary clothing and home goods, and make stores easier to shop to appeal to customers who are “increasingly savvy and are seeking more value.”
Bender cited tangible benefits from changes the chain has made:
- The Sephora partnership is proving a traffic and sales driver. Placing the juniors department next to Sephora sparked cross-shopping and led to positive same-store sales for that category in Q3.
- Enhanced promotional strategies, including making more digitally native brands coupon eligible, are improving results among Kohl’s cardholders.
- The use of AI in digital operations, marketing, and content creation is bolstering productivity and customer engagement.
Our take: Kohl’s was upbeat that its recovery is gaining momentum, but it has more work to do to turn sales declines into gains. The company must broaden the progress made in isolated areas throughout the store and show that its initial improvements can become a true turnaround.
This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.