Kohl’s reported first-quarter fiscal 2026 net sales of $3.0 billion, down 1.7% from the same quarter a year ago, while comparable sales fell 1.1%. Gross margin edged up to 39.9% from the prior-year period, a gain of 4 basis points.
Selling, general and administrative expenses declined 1.6% to $1.1 billion, but rose to 36.2% of total revenue, up 15 basis points year over year. Operating income dropped to $46 million from $60 million, and operating margin slipped to 1.4% from 1.8%, a decline of 41 basis points.
The company posted a net loss of $14 million, or $0.13 per diluted share, compared with a net loss of $15 million, also $0.13 per diluted share, a year earlier.
Inventory ended the quarter at $2.9 billion, down 8% from last year. Operating cash flow was a use of $74 million. Borrowings under the revolving credit facility were zero, down from $545 million a year earlier.
Kohl’s said it is sticking with its full-year 2026 outlook for net sales and comparable sales to decline 2% to flat. It also reiterated expectations for adjusted operating margin of 2.8% to 3.4%, adjusted diluted earnings per share of $1.00 to $1.60, and capital expenditures of $350 million to $400 million.
The board declared a quarterly cash dividend of $0.125 per share, payable June 24 to shareholders of record June 10. Today the company's shares have moved -0.15% to a price of $13.27. Check out the company's full 8-K submission here.
