Kohl’s Sephora Problem: Could Beauty Weakness Slow The Recovery?

Kohl’s Corporation reported first-quarter results for 2026 reflecting a mixed yet cautiously optimistic performance amid ongoing economic pressures on its core customer base. Comparable sales decreased 1.1%, marking the best quarterly result in over four years, while net sales declined 1.7%, primarily due to store closures from the prior year. The decline in transactions notably influenced store sales, which were down in the low single digits, whereas digital sales expanded by 4%, driven by higher traffic and growth in the digital marketplace segment. Excluding marketplace sales, comparable sales would have been down 0.6%. A key positive highlighted was the stabilization of the Kohl’s Card customer segment, which achieved flat comparable sales following a significant decline the previous quarter.