| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 94 | 7.3x | 17.8x | Top tier | |
Growth | 30 | -2.9% | 7.1% | Bottom tier | |
Quality | 66 | 4.9% | 4.5% | Top tier | |
Safety | 39 | 6.5x | 2.6x | Bottom tier | |
Capital Return | 21 | 2.90% | 2.12% | Bottom tier | |
Momentum | 50 | 41.5% | 2.9% | Around median | |
Sentiment | 44 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Kohl's Corporation operates in omnichannel retail, generating revenue from the sale of apparel, footwear, home and beauty products, accessories, and toys through stores and digital platforms, alongside revenue from the Kohl's credit card business. Its assortment drivers include owned brands such as Sonoma, Tek Gear, FLX, and The Big One, as well as partnerships and national brands such as Sephora, Nike, Levi's, and Babies"R"Us. In fiscal 2025, the company recorded revenue of $15.5 billion, gross profit of $6.3 billion, net income of $272 million, and earnings per share of $2.38.
In quarter 2 of fiscal 2027, comparable sales declined 0.9%, with slight decreases in both transaction count and average transaction value, while store sales fell 2% and digital sales grew 2.8%. The company generated net income of $151 million and diluted earnings of $1.28 per share, compared with a published estimate of $0.57, while gross margin improved 305 basis points and selling, general, and administrative expenses declined 0.9%. However, approximately $100 million of the $150 million in tariff refunds reduced cost of goods sold; excluding this impact, the improvement in gross margin was only about 5 basis points.
The performance mix was uneven in quarter 2 of fiscal 2027: home increased 1%, owned brands 3%, juniors' apparel 10%, and toys by double digits, while Kohl's Marketplace grew 88%. In contrast, Sephora at Kohl's declined 4% and women's apparel 1.5%, while the children's and accessories businesses were broadly flat; accessories increased by mid-single digits excluding Sephora. These figures show that the operational improvement is being driven by specific categories and cost discipline, while core sales have not yet returned to growth.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $15.4 within a wide range of $9 to $20, with a Neutral consensus; even the highest target remains below the 52-week range peak of $25.22, reflecting clear caution compared with the stock's highest valuation during the year. Material published on August 26, 2026 estimated the price-to-earnings ratio at approximately 7.6 times, but this apparent discount is associated with weak underlying margins, as the operating margin was 3.9% and the net margin was 1.8% according to the material, and with part of the raised earnings guidance relying on a tariff benefit of approximately $0.65 per share.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Kohl's generated diluted earnings of $1.28 per share, compared with a published estimate of $0.57, and recorded net income of $151 million. Gross margin benefited by approximately $100 million from total tariff refunds of $150 million, alongside expense reductions in stores, headquarters, and the credit business. Gross margin therefore improved 305 basis points, but the improvement was only about 5 basis points when excluding the impact of the tariff refunds.
Core sales did not return to growth, as comparable sales declined 0.9% and store sales fell 2%, with slight decreases in transaction count and average transaction value. In contrast, digital sales increased 2.8% and Marketplace grew 88%. If Marketplace gross merchandise value growth had been included in comparable sales, the decline would have been 0.2% instead of 0.9%.
Home sales increased 1% in quarter 2 of fiscal 2027, supported by decor, small appliances, and brands such as Shark, Ninja, and KitchenAid. Owned brands grew 3%, juniors' apparel achieved a 10% increase, and toys rose by double digits, led by LEGO and K-Pop Demon Hunters. Accessories also increased by mid-single digits excluding Sephora, supported by jewelry and impulse-purchase products.
Sephora at Kohl's sales declined 4% in quarter 2 of fiscal 2027 because of the expanded distribution of several major brands and a slowdown in skincare following a difficult comparison with previous launches. The company plans to add fragrance towers to 250 stores in November 2026 and seasonal gift outposts in 130 stores, alongside brands such as Givenchy, Emi Jay, and Topicals. Nevertheless, management said the weakness recorded year to date may continue until the new brands reach greater scale and the impact of expanded distribution is lapped.
The company expects comparable sales to range from a 1.5% decline to flat compared with fiscal 2025. It expects an adjusted operating margin of between 3.5% and 4% and adjusted earnings per share of between $1.80 and $2.40, including a tariff benefit of approximately $0.65 per share. It also expects capital expenditures of between $350 million and $400 million and operating cash flow of between approximately $950 million and $1 billion, with no additional future tariff refunds included.
Cash and equivalents totaled $821 million at the end of quarter 2 of fiscal 2027, and the company had not drawn on its ABL facility. Kohl's repurchased $113 million of debt year to date at a $15 million discount, reducing long-term debt to its lowest level since 2007, according to management. It also plans to repurchase approximately $100 million of shares during 2026, paid $14 million in dividends during the quarter, and declared a dividend of $0.125 per share payable on September 23, 2026.
