Kohl’s (KSS) Stock Drops 9% After Weak Holiday Sales and Soft Full-Year Outlook

TLDR

• Kohl’s Q4 net sales fell 3.9% to $4.97 billion, missing the $5.02–$5.03 billion analyst estimate
• Comparable sales dropped 2.8%, nearly double the expected 1.5% decline
• Adjusted EPS of $1.07 beat estimates of 86 cents, but the revenue miss overshadowed it
• Full-year guidance calls for comparable sales down 2% to flat, below analyst expectations
• Foot traffic at Kohl’s fell 5% in Q4, while rival Ross Stores saw an 11.9% rise

Kohl’s stock dropped as much as 9% in premarket trading on Tuesday after the retailer reported weaker-than-expected holiday quarter sales and issued a cautious outlook for the year ahead. The stock is now down roughly 28% in 2026.

Q4 net sales came in at $4.97 billion, a 3.9% drop from the prior year and short of the $5.02–$5.03 billion Wall Street had penciled in. Comparable sales fell 2.8% — nearly twice the 1.5% decline analysts had forecast.

Kohl’s Corporation, KSS

The one bright spot was earnings. Adjusted EPS hit $1.07, topping the 86-cent consensus estimate. But the market wasn’t buying it.

Bender described the company as “resetting its foundation,” a phrase that signals more turnaround work to come rather than a quick fix.

Sales Decline Heading Into Year Five

The full-year outlook gave investors little to cheer. Kohl’s guided for comparable net sales of flat to down 2% for the current fiscal year. Analysts had expected just a 0.7% decline.

The adjusted EPS guidance range of $1.00 to $1.60 puts the midpoint at $1.30 — below the $1.39 consensus. That is a range wide enough to suggest uncertainty at the top.

If comparable sales do fall again, it would mark the fifth straight year of declining same-store sales for the retailer.

Foot traffic data from Placer.ai underlines the challenge. During the October-to-December period, visits to Kohl’s stores dropped 5%. Over the same stretch, Ross Stores saw foot traffic climb 11.9%.

Where the Customers Are Going

Kohl’s has been losing ground to Amazon and off-price rivals for several quarters. Muted U.S. discretionary spending has not helped, and the company has faced a string of merchandising issues that hurt demand.

The retailer has also seen significant leadership churn in recent years. Bender’s appointment in November was meant to bring stability and direction to that turnaround effort.

Despite the current-year declines, KSS had a strong run over the past 12 months — rising around 62% after briefly going viral as a meme stock last summer and posting an earnings beat in November.

The stock is down 27–28% so far in 2026.

The post Kohl’s (KSS) Stock Drops 9% After Weak Holiday Sales and Soft Full-Year Outlook appeared first on CoinCentral.