Kohl’s has held firm on its full-year outlook after posting smaller-than-expected losses for the first quarter, signalling cautious optimism amid leadership upheaval and tariff-driven market pressure.
The US department store chain reported a Q1 loss of 13 cents per share, ahead of analysts’ expectations for a 26-cent loss, according to LSEG.
Net sales came in at $3.05 billion, slightly beating estimates of $3.02 billion.
The results arrive just weeks after the company ousted its CEO over a personal relationship with a vendor. Despite the leadership turmoil, shares rose about 5% in premarket trading, although the stock remains down 43% year-to-date.
“Kohl’s has a long road to turning the business around but it’s gratifying to see that the CEO turmoil didn’t drag down this quarter,” Kim Forest, CIO of Bokeh Capital Partners, told Reuters.
While other retailers have trimmed forecasts due to rising tariffs and weakening consumer demand, Kohl’s reaffirmed its guidance.
It still expects 2025 sales to decline by 5% to 7% and earnings per share to land between 10 and 60 cents.
Like Macy’s, Kohl’s is closing underperforming stores and refocusing on prime retail locations.
Its partnership with Sephora remains a bright spot, with beauty sales exceeding $1.8 billion in 2024. Kohl’s plans to expand Sephora outlets to all of its US stores by year-end.
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