Key Takeaways:
- Same-store sales rose 1.1%, the best performance in four years
- Revenue of $3.17 billion was in line with analyst estimates
- Kohl's reaffirmed full-year outlook for sales down 2% to flat
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Kohl's jumps 11% as comparable sales post first gain in four years
Kohl's reported Q1 comparable sales growth of 1.1%, its best in four years, while revenue of $3.17 billion matched estimates.
"We are pleased with our start to 2026," Chief Executive Officer Michael Bender said. "Our key initiatives continue to drive progressive improvements to the business, resulting in our best comparable sales performance in over four years."
The department store chain posted a net loss of $14 million, or 13 cents per share, narrower than the 22-cent loss analysts had projected. Revenue fell 2% from a year earlier. Same-store sales improved from a 3.9% decline in the same quarter last year.
Shares surged 11.2% to $14.38 in morning trading. The stock had fallen more than 35% year to date before the report as Kohl's struggled with declining sales and macroeconomic pressures.
Kohl's reaffirmed its full-year outlook, projecting net sales and comparable sales in a range of down 2% to flat. The company expects adjusted earnings per share of between $1 and $1.60.
The retailer has been closing underperforming locations, averaging 1% annual store count declines over the past two years. Operating margin held steady at 1.5%, matching the same quarter last year. Free cash flow improved to negative $158 million from negative $202 million a year earlier.
Bender cited strong expense management, cleaner inventories and an improved balance sheet as evidence of disciplined execution. The results mark a potential turning point for the Milwaukee-based chain, which operates more than 1,100 stores across the US.
The results contrast with broader retail trends. Dick's Sporting Goods earlier this week reported core comparable sales growth of 6% and raised its full-year guidance, while Foot Locker posted its first positive comparable sales quarter under Dick's ownership. Kohl's turnaround, while still early, shows the department store sector may be stabilizing after years of traffic declines.
The guidance suggests management expects the turnaround to continue. Investors will watch the next quarterly report for further improvement in same-store sales and margin expansion.
This article is for informational purposes only and does not constitute investment advice.
[1] Kohl's stock jumps as slumping retailer says sales trends are improving[2] Kohl's (NYSE:KSS) Reports Q1 CY2026 In Line With Expectations, Stock Jumps 11.2%[3] Kohl's (NYSE:KSS) reports Q1 CY2026 in line with expectations, stock jumps 11.2%[4] Dick’s Sporting Goods Reports Q1 Growth, Details Foot Locker ‘Fast Break’ Progress
