Kohl’s (NYSE:KSS) reported a narrower-than-expected loss for Q1, with adjusted EPS of -$0.13 versus the -$0.47 analysts anticipated. Revenue fell 4.1% year-over-year to $3 billion but still edged past the $2.99 billion estimate. Comparable sales declined 3.9%.
Despite weaker sales, profitability improved: gross margin rose 37 basis points to 39.9%, and operating income increased to $60 million from $43 million a year ago.
But the company’s full-year guidance fell short of expectations. Kohl’s reiterated its fiscal 2025 EPS outlook of $0.10–$0.60, below the $0.67 consensus, and maintained projections for a 5–7% drop in net sales and a 4–6% decline in comparable sales.