US omnichannel retailer Kohl’s Corporation has reported higher operating and net income for fiscal year 2025 (FY25), even as net sales declined during the year.
For the year ending 31 January 2026, net sales fell 4% year-on-year (YoY) to $14.77bn, while comparable sales declined 3.1%.
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Operating income for the year totalled $624m, up from $433m in the previous fiscal year.
Net income reached $272m, equivalent to $2.38 per diluted share. In the preceding fiscal year, the company recorded net income of $109m, or $0.98 per diluted share.
During the year, the retailer also recognised a $129m gain related to a legal settlement tied to a credit card interchange fee lawsuit.
In the fourth quarter, net sales decreased 3.9% YoY to $4.97bn while comparable sales declined 2.8%.
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By GlobalDataOperating income for the quarter rose to $212m from $126m in the same quarter in the previous year.
Net income came in at $125m, or $1.07 per diluted share, up from $48m, or $0.43 per diluted share, in the prior year’s quarter.
Kohl’s CEO Michael Bender said: “We are ending 2025 in a stronger position than we started, with important work still ahead of us. Over the past year, our efforts have been focused on resetting our foundation.
“This focus is intended to stabilise the business and strengthen our operational ability to build for a stronger future. In 2025, we made meaningful progress, despite our Q4 topline coming in softer than our expectations.”
Looking ahead to FY26, the company expects net sales and comparable sales to range from a 2% decline to flat on a YoY basis.
Adjusted operating margin is projected to be between 2.8% and 3.4%, while adjusted diluted earnings per share are forecast at $1 to $1.60.
Capital expenditure for the year is expected to be around $350m to $400m.
The board of directors has also declared a quarterly cash dividend of $0.125 per share on the company’s common stock, payable on 1 April 2026 to shareholders.
