Kohl's navigates sales dip with improved gross margin in Q3 2025

Kohl's Corporation reported a decrease in net sales for the third quarter of fiscal 2025, but managed to improve its gross margin. The company is maintaining a focus on its 2025 initiatives amidst an uncertain macroeconomic environment.

For the third quarter ended November 1, 2025, net sales decreased 2.8 percent year-over-year to 3.4 billion dollar, with comparable sales down 1.7 percent. However, the gross margin increased by 51 basis points to 39.6 percent. Net income was 8 million dollar, or 0.07 dollar per diluted share, compared to 22 million dollar, or 0.20 dollar per diluted share, in the prior year.

"We are pleased with Kohl’s third quarter results, marking a third consecutive quarter of delivering top-line and bottom-line performance ahead of our expectations," said Michael J. Bender, Kohl’s chief executive officer. "These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we continue to move in the right direction."

Kohl's anticipates a decrease in net sales of 3.5 percent to 4 percent and a decrease in comparable sales of 2.5 percent to 3 percent for the full year 2025. The company expects an adjusted operating margin in the range of 3.1 percent to 3.2 percent and adjusted diluted EPS in the range of 1.25 dollar to 1.45 dollar.

This article was created with assistance from AI.