Kohl’s Corporation: A $674 Million Cash Position Gives The Turnaround More Flexibility

Kohl’s reported fourth-quarter and full-year 2025 results that showed continued sales pressure but better profitability, expense control, inventory management, and balance sheet strength. Net sales fell 3.9% in Q4 and 4% for the year, while comparable sales declined 2.8% and 3.1%, respectively. Lower store transactions were the main driver, though digital sales grew modestly in Q4 and were flat for the year. Severe winter weather affected about half the store base in late January and contributed roughly 70 basis points to the Q4 comp decline. Sales were also hurt by assortment and inventory allocation issues, especially in smaller-format stores, as well as weaker holiday promotional execution during Black Friday and Cyber Monday amid heightened consumer price sensitivity. There were some encouraging signs in customer and category trends. The Kohl’s Card customer segment improved by 120 basis points from Q3, though it remained down mid-single digits.