US-based omnichannel retailer Kohl’s has lowered its expectations for full-year 2025 performance after reporting softer sales and earnings in the third quarter (Q3).

The company now anticipates net sales for fiscal 2025 to decline between 3.5% and 4%.

Comparable sales are projected to fall between 2.5% and 3%. The company expects an adjusted operating margin in the range of between 3.1% and 3.2% and adjusted diluted earnings per share between $1.25 and $1.45.

The revised outlook follows a weaker Q3 for the period ended 1 November 2025. Net sales for the quarter were $3.4bn, down 2.8% from a year earlier, while comparable sales declined 1.7%.

Net income fell to $8m, or $0.07 per diluted share, compared with $22m, or $0.20 per diluted share, in the same quarter of 2024.

Gross margin as a share of net sales rose to 39.6%, an increase of 51 basis points year-on-year.

Operating income for the quarter was $73m, down from $98m a year earlier.

Quarter-end inventory stood at $3.9bn, 5% lower than at the same point of the previous year.

Kohl’s also declared a quarterly cash dividend of $0.125 per share.

Kohl’s CEO Michael Bender stated: “These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we continue to move in the right direction.

“We are focused on building on this momentum, as we remain committed to delivering quality products, great value and a frictionless experience to our customers in an uncertain macroeconomic environment.”

For the first nine months of fiscal 2025, net sales totalled $9.8bn, a decrease of 4% from the previous year, with comparable sales down 3.2%.

Gross margin as a percentage of net sales was 39.8%, an increase of 39 basis points year-on-year. Operating income for the nine-month period was $412m, up from $307m a year earlier.

Net income for the period rose to $147m, or $1.30 per diluted share, compared with $61m, or $0.55 per diluted share, in the same period of the previous year.