Kohl's Corporation reported its financial results for the first quarter of fiscal 2025, revealing a decline in both revenue and profitability compared to the same period last year. The company generated net sales of $3.049 billion, a decrease of 4.1% from $3.178 billion in the first quarter of fiscal 2024. Total revenue, which includes other revenue sources, fell to $3.233 billion from $3.382 billion, marking a decline of $149 million. The company's gross margin improved slightly to 39.9%, up 37 basis points year-over-year, attributed to better inventory management and a favorable merchandise mix.
Kohl's reported an operating income of $60 million, an increase from $43 million in the prior year, reflecting a rise in operating income as a percentage of total revenue to 1.9%. However, the company still faced a net loss of $15 million, or $(0.13) per diluted share, an improvement from a net loss of $27 million, or $(0.24) per diluted share, in the same quarter last year. The decrease in net loss was supported by a reduction in selling, general, and administrative expenses, which fell by 5.2% to $1.164 billion.
In terms of operational metrics, Kohl's reported a decrease in customer engagement, with comparable sales down 3.9% and digital sales declining by 7.7%. Digital penetration represented 24% of net sales, a slight decrease from 25% in the previous year. The company continues to expand its Sephora presence, with over 1,100 stores featuring Sephora shops, contributing to a 5% increase in accessory sales. However, sales across other categories, including women's and children's apparel, saw declines.
Kohl's financial position showed a decrease in cash and cash equivalents, which fell to $153 million from $228 million a year earlier. The company reported a significant increase in borrowings under its revolving credit facility, totaling $545 million as of May 3, 2025, compared to $355 million a year prior. Looking ahead, Kohl's expects net sales to decline between 5% and 7% for the full fiscal year, with comparable sales projected to decrease by 4% to 6%. The company plans to invest approximately $400 million to $425 million in capital expenditures, focusing on enhancing its omnichannel platform and expanding its Sephora shops.
About KOHLS Corp
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.