Kohl’s is showing signs of stability after a stretch of uncertainty. In recent Kohl’s news, the company posted strong Q2 2025 results.
With improved margins, reduced expenses, and a legal settlement boosting profits, the quarter signals progress even as revenue slips.
Latest Kohl’s News: Kohl’s Delivers Strong Q2 2025 Results Despite Sales Drop
Kohl’s reported second-quarter net income of $153 million, more than double the $66 million from the same period last year.
Net sales declined 5.1% to $3.3 billion, with comparable sales down 4.2%.
Despite the drop in revenue, gross margin improved by 28 basis points to 39.9% of net sales.
SG&A expenses fell 4.1% to $1.2 billion, though they increased slightly as a percentage of total revenue to 33.8%
The company repaid $353 million in maturing debt and reduced borrowings under its revolving credit facility by $335 million.
At the same time, Kohl’s issued $360 million in 10.000% senior secured notes due 2030, increasing long-term debt by $347 million.
Based on these results, Kohl’s raised its full-year 2025 financial outlook.
Kohl’s News: Executive Termination & New Interim CEO
Kohl’s made headlines on May 1 after firing CEO Ashley Buchanan just a few months into the job. According to the company’s internal investigation, he pushed for deals involving a vendor with whom he had a personal relationship. He was only a little over 100 days into the role when the decision was made.
Additionally, the company said this had nothing to do with sales, financial reporting, or anyone else at Kohl’s. Kohl’s emphasized that the issue was tied strictly to his own actions.
At the same time, Kohl’s named board member Michael Bender as interim CEO. He’s been on the board since 2019 and recently became its chair. Now, he’s stepping in to lead while the company begins looking for a permanent replacement.
Furthermore, a national search is already underway, and the board plans to hire a top recruiting firm to help with the process.
Q4 Earnings Beat Estimates, 2025 Outlook Falls Short
Kohl’s ended the fourth quarter with earnings and revenue that beat expectations, but the forecast for 2025 left investors wanting more.
Firstly, revenue for the quarter reached $5.18 billion, bringing the total for the year to $15.39 billion. Still, sales were down. Secondly, net sales dropped 9.4% in the fourth quarter, and comparable sales fell 6.7%. Then, for the whole year, net sales were down 7.2%, and comparable sales slid 6.5%.
Meanwhile, earnings per share came in at $0.43 for the quarter, or $0.95 on an adjusted basis. Then, for the year, adjusted earnings landed at $1.50 per share.
Lastly, looking ahead, Kohl’s expects revenue to fall by 5% to 7% in fiscal 2025. As a result, Analysts are expecting a rough stretch for Kohl’s. Several firms, including JPMorgan and Citi, have lowered their price targets, with some dropping them to as low as $5 due to ongoing sales challenges.
During the earnings call, CFO Jill Timm noted that most Kohl’s stores are performing well and remain profitable. She also mentioned that many store leases will be up for renewal in the next few years, giving the company a chance to reassess locations and make changes where needed.
Plans to Shut Down 27 “Underperforming” Stores by April
Earlier this year, Kohl’s shared its decision to shut down 27 stores and cut nearly 10% of its corporate staff.
At the time, the company said these closures were part of a broader effort to shape its long-term strategy while also adjusting to current business needs.
All affected employees were notified ahead of time. Because of these layoffs, Kohl’s is offering severance or the chance to apply for other positions within the company.
Moreover, the company acknowledged the difficulty of the move and said they’re doing what they can to support staff through the transition.
Consequently, the closures will impact stores across 15 states. Here’s the full list:
Alabama
- Spanish Fort – 21000 Town Center Ave.
Arkansas
- Little Rock West – 13909 Chenal Pkwy.
California
- Balboa (San Diego) – 5505 Balboa Ave.
- Encinitas – 134 N El Camino Real
- Fremont – 43782 Christy St.
- Mountain View – 350 Showers Dr.
- Napa – 1116 1st St.
- Pleasanton – 4525 Rosewood Dr.
- Point West (Sacramento) – 1896 Arden Way
- San Rafael – 5010 Northgate Dr.
- San Luis Obispo – 205 Madonna Rd.
- Westchester – 8739 S Sepulveda Blvd.
Colorado
- Arapahoe Crossing (Aurora) – 6584 S Parker Rd.
Georgia
- Duluth – 2050 W Liddell Rd.
Idaho
- Boise – 400 N Milwaukee St.
Illinois
- Plainfield – 11860 S Route 59
- Spring Hill (West Dundee) – 3000 Spring Hill Ring Rd.
Massachusetts
- Stoughton – 501 Technology Center Dr.
New Jersey
- East Windsor – 72 Princeton Hightstown Rd.
Ohio
- Blue Ash – 4150 Hunt Rd.
- Forest Park (Cincinnati) – 100 Cincinnati Mills Dr.
Oregon
- Portland Gateway – 10010 NE Halsey St.
Pennsylvania
- Pottstown – 351 W Schuylkill Rd.
Texas
- North Dallas – 18224 Preston Rd.
Utah
- Riverton – 13319 S 3600 W Ste 13LOT
Virginia
- Herndon – 2100 Centreville Rd.
- Williamsburg – 100 Gristmill Plz
Kohl’s News: What’s Next for Kohl’s After Recent Events
Kohl’s is still in transition. Sales continue to decline, but profitability improved this quarter, helped by cost controls and a legal settlement.
The company is cutting debt, managing inventory more tightly, and shifting its strategy as it works through broader retail pressures.
The next few quarters will show whether these efforts are enough to build long-term momentum or simply buy more time.
To stay on top of the latest updates about Kohl’s, other clothing retailers, and business finance news, subscribe to Financial Daily Update today.
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Updated August 28, 2025
