Kohl’s posts best quarter in four years, but results remain weak

By Kaycee Enerva May 29, 2026

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Kohl’s claimed it delivered its strongest quarter in more than four years, but still remained under pressure as sales continued to decline.

Net sales for the quarter ended May 2 fell 1.7 per cent year over year to $3 billion, while comparable sales dropped 1.1 per cent. Gross margin improved slightly to 39.9 per cent of net sales, up four basis points from a year earlier.

Despite the meager results, CEO Michael Bender said the company’s turnaround efforts were beginning to show progress.

“Our initiatives continue to drive progressive improvements to the business, resulting in our best comparable sales performance in over four year,” Bender said.

“In addition, we continue to manage the business with great discipline, leading to strong expense management, cleaner inventories, and an improved balance sheet.”

Selling, general and administrative expenses fell 1.6 per cent to $1.1 billion, although operating income declined to $46 million from $60 million a year earlier.

Kohl’s reported a net loss of $14 million, compared with a net loss of $15 million in the prior-year period.

“Moving forward, we remain committed to delivering more value and a better experience to our customers,” added Bender.

Neil Saunders, MD at GlobalData, said the results showed some operational improvement, but cautioned that the business was still facing deeper structural challenges.

“While it is true that the sales declines are less intense than they once were, and while it is also true that the comparable performance was the best in four years, the topline metrics remain firmly in negative territory,” Saunders explains.

He noted that Kohl’s comparable sales have been declining for more than four years, contributing to a 27.4 per cent drop in first-quarter sales since 2019.

However, Saunders still commended the retailer for improvements in store presentation, introducing initiatives such as its ‘Deal Bar’ and a stronger focus on private-label products.

“Kohl’s still has time to make the various corrections that are needed, partly because it has a solid cash position and a reasonable balance sheet,” he concluded.