Kohl’s Corporation (KSS) has slowed its comparable store sales decline, posting a -1.7% drop in the third quarter of 2025. This marks the retailer’s strongest quarterly performance in this metric since 2021.
Improved Full-Year Guidance
The company updated its fiscal 2025 comparable sales outlook to a decline of 2.5% to 3.0%. This revision beats prior expectations of a 4% to 6% drop.
Boost to Operating Margins
Stronger-than-anticipated sales bolster operating margins. They achieve this by shrinking selling, general, and administrative (SG&A) expenses as a percentage of revenue.
Path to Turnaround
Kohl’s must still reverse the sales trend completely. Analysts target flat to +1% comparable store sales growth in 2026 as a key milestone for recovery.
