Kohl's(NYSE) KSS

Kohl's helps families buy clothes and home items in one place. They sell goods through stores and an easy-to-use website. Customers find popular brands at prices that fit their budgets.

What You'll Find at Kohl's

The company generates net sales (the value of goods sold minus returns) through several primary categories.

• Women's Apparel: Clothing for women including brands like Simply Vera Vera Wang and LC Lauren Conrad; generated $849 million in net sales for the quarter ended May 2, 2026.
• Accessories and Sephora: Beauty products from the Sephora partnership and various jewelry items; represented $642 million in net sales in Q1 2026.
• Men's Apparel: Broad range of professional and casual clothing for men; contributed $567 million to net sales in the first quarter of 2026.
• Home Goods: Kitchen, bedroom, and bathroom items including the Sonoma Goods for Life brand; reached $369 million in net sales for Q1 2026.
• Children's Apparel: Essential clothing and footwear for kids including the Jumping Beans brand; accounted for $309 million in net sales in Q1 2026.

Strategic Steps Forward

• Integrated Sephora beauty shops into retail locations to expand product variety and reach new customers.
• Reduced outstanding debt by $50 million through repurchases of notes on the open market during the first quarter of 2026.
• Issued $360 million in senior secured notes during 2025 to manage the long-term capital structure.
• Submitted claims for $140 million in tariff refunds following a 2026 ruling regarding the International Emergency Economic Powers Act.

How Kohl's Stays Competitive

The company uses an omnichannel strategy, which means it lets customers shop seamlessly across its 1,151 stores and its digital platforms. This integrated network allows physical stores to act as local hubs for shipping online orders and accepting returns, which helps manage total logistics costs.

A Closer Look at the Numbers

• Total revenue hit $3.2 billion in Q1 2026, down 2.0% from $3.2 billion in Q1 2025.
• Gross margin (the profit left after paying for the products themselves) reached 39.9% of net sales in Q1 2026, up 4 basis points year-over-year.
• Net loss was $14 million in Q1 2026, which narrowed from a $15 million loss in Q1 2025.
• Free cash flow hit -$158 million in Q1 2026, an improvement from -$202 million during the same period in 2025.

Bottom Line

Kohl's is focusing on its inventory levels and digital capabilities to stabilize its retail business. By integrating beauty services and managing its debt, the company is adapting to a changing and competitive retail environment.