Kohl's Corporation reported its financial results for the third quarter of fiscal 2025, revealing a decline in both revenue and profitability compared to the same period last year. For the three months ended November 1, 2025, the company generated net sales of $3.4 billion, a decrease of 2.8% from $3.5 billion in the prior year. Total revenue for the quarter was $3.575 billion, down from $3.710 billion, while net income fell to $8 million, or $0.07 per diluted share, compared to $22 million, or $0.20 per diluted share, in the same quarter of 2024. The decline in sales was attributed to a 3% decrease in transaction volume, although average transaction value remained stable.
In terms of operational metrics, Kohl's reported a gross margin of 39.6%, an increase of 51 basis points year-over-year, driven by improved inventory management and a favorable merchandise mix. Selling, general, and administrative (SG&A) expenses decreased by 2.1% to $1.3 billion, although as a percentage of total revenue, SG&A expenses increased to 35.3%. The company’s inventory levels were reported at $3.9 billion, reflecting a 5% decrease from the previous year. Cash flow from operating activities improved significantly, generating $630 million year-to-date compared to $52 million in the same period last year.
Strategically, Kohl's has been focusing on enhancing its omnichannel retail capabilities, with digital sales increasing by 2.4% in the third quarter, representing 28% of net sales. The company continues to expand its Sephora shop-in-shop concept, which is now present in over 1,100 stores. Additionally, Kohl's has made organizational changes, appointing Michael J. Bender as the new Chief Executive Officer effective November 23, 2025, after serving as interim CEO since May 2025.
Kohl's financial position showed a total asset value of $14.144 billion as of November 1, 2025, with total liabilities at $10.214 billion, resulting in shareholders' equity of $3.930 billion. The company reported a significant reduction in borrowings under its revolving credit facility, which stood at $45 million, down from $749 million a year earlier. The company also declared a quarterly cash dividend of $0.125 per share, payable on December 24, 2025.
Looking ahead, Kohl's anticipates a challenging retail environment, projecting a decrease in net sales of 3.5% to 4% for the full fiscal year 2025. The company expects comparable sales to decline by 2.5% to 3% and adjusted diluted earnings per share to range between $1.25 and $1.45. Kohl's remains committed to its long-term strategy of providing value and quality to customers while navigating the complexities of the current economic landscape.
About KOHLS Corp
Kohl's Corporation is a leading omnichannel retailer operating over 1,175 stores and an e-commerce platform, offering private and national brands in apparel, footwear, accessories, beauty, and home goods. Its business model combines physical stores and online sales, focusing on value, private brands, and customer experience to serve primarily U.S. consumers. The company emphasizes supply chain efficiency, brand development, and a strong digital presence to maintain competitive advantage.
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