Kohl's Corporation Q4 FY2025 earnings call

2025年是重大变革和显著进展的一年，团队适应并致力于新工作方式，2025年底比年初更强大但仍有重要工作。2026年关键举措包括：提供精选平衡的产品组合，投资关键风格和类别，减少冗余，在服装业务中加强核心基础，丰富牛仔、连衣裙、运动装等时尚相关类别；重新确立价值和质量领导地位，简化促销声明，部署更个性化实时优惠，加大自有入门价格点品牌的投资；提供无缝的全渠道体验，投资计划和供应链流程，改善库存分配，提升数字体验，现代化网站结构和基础数据架构。

In Q4, comparable sales decelerated to down 2.8%. Diluted earnings per share was $1.07. Year-round businesses like core basics and essentials had positive growth.自有品牌方面，juniors业务增长8%，petites增长26%，男士和儿童自有品牌第四季度同店销售正增长，家居业务因季节性装饰表现不佳；配饰业务中，Sephora业务Q4可比销售额改善至持平，增长2%，排除Sephora后低单位数增长，珠宝业务有增长，鞋类业务因活跃鞋类和靴子疲软表现不佳。全年净销售额下降4%，可比销售额下降3.1%，数字销售第四季度低单位数增长，全年持平，Store sales mid-single digits decline for Q4 and full year.

2026年全年预计净销售额和可比销售额在下降2%到持平范围，运营利润率预计在2.8%到3.4%，每股收益预计在1.00到1.60美元；Other Revenue预计下降4%到6%；毛利率预计持平或略有下降；SG&A美元预计下降0.5%到1.5%；折旧摊销700百万美元，利息费用285百万美元，税率22%；库存预计低单位数下降，资本支出预计在350百万到400百万美元范围，Q1可比销售额预计低单位数下降，剩余季度指标平衡。

宏观经济环境对核心中低收入客户的财务压力，他们寻求价值，影响销售；冬季风暴导致约70个基点的可比销售额下降；库存分配和定价策略存在问题，如秋季季节性业务执行不佳，假日购物期定价未达预期；自有品牌家居业务在季节性装饰上买得过多，缺乏竞争力。

Q: Can you just talk about the “By Kohl's” campaign that you are going to launch this spring, what it is going to involve, and then laterally, what is your expectation for comps in 2026 amongst your Kohl's cardholder given the recent improvement that you saw in the back half of 2025?

A: Michael Bender said the “By Kohl's” campaign is a continuation of showcasing proprietary brand portfolio, marketing element brings important proprietary brands together. Jill Timm said Kohl's charge holder performance showed stepped improvement from down mid-teens to down single digits at end of 2025, expected to continue improving, will probably lag front half of 2026 and catch up in back half.

Q: Just on the credit revenue line, you are guiding down 4% to 6%. Is there any geographical shift across the P&L that is happening? Or just maybe explain why you expect it to be down? And then just bigger picture, is there a way to size up how much of an impact the shift away from your proprietary brands over the past handful of years has actually had on your credit business given that I believe that the cardholders likely over-index to owned brands versus nationals?

A: Jill Timm said it lags because of less accounts receivable, coming into year with less, interest and late fee revenue generated from purchases lag top line, shift away from proprietary brands led to less frequency from customer but she continued to shop, now seeing reaction with brought back coupons and proprietary brands.

Q: Which of these do you view as the most immediate catalyst for recapturing market share in 2026? Furthermore, how should we think about the scaling here, where these assortment pivots and other initiatives provide enough lift to drive a return to comp growth?

A: Michael Bender said proprietary brands are significant focus, they index heavily toward Kohl's credit card-carrying customer, also providing $10 and under items like toy tower and Deal Bar as immediate catalysts, more to come.

Q: On the women's business, as you think about this year and I think the progress that you made last year, where are the biggest opportunities ahead? And I guess on the same line of questioning would be just in home, I think you think about what you have learned sort of Q4 in home, soft home, tabletop. Can you just talk through that category as well? And just curious on sort of online versus in-store, how you would merchandise that category?

A: Jill Timm said for women's, juniors business with SO proprietary brand is opportunity, denim assortment broadening, curating better in core knits; for home, learned need more choices in seasonal decor, now corrected, will move into next year with more choice and sharp price points, online and in-store will merchandise with curated assortment.

Q: I know you have a very store base related to profitability. How are you thinking of openings and closings this year? And the small-store boxes? What is the game plan and remodels? And then, Michael, as you talked about the initiatives for top line growth, how do you see the framework of the store changing either by category, obviously at the impulse lanes? What does footwear and active mean for you this year?

A: Michael Bender said vast majority of stores are profitable, no major change in store base expectation, focus on optimizing; Jill Timm said footwear dress casual doing well, active footwear innovation needed, will lag front half of year, back half catch up, store framework changes include Sephora coming in, juniors back to front, impulse lines and queueing lines, in-store showcases of brands with elevated signing and mannequins.

Q: Regarding trip assurance, what is the timing of that happening? And there are some things you can do sooner you have been doing than making happen. But how does it phase in quarterly? And as we also model Other Income, should we know about the comparisons and drivers throughout the year, as in profitability? Your company is quite sensitive to that line. It sounds like a lot is under your control, but what could be risk factors to the upside and downside on Other Income for us to consider? And third, you have been on an inventory management journey for many, many years. I think it is different now, but what is different in terms of breadth versus depth? It sounds like there are some decisions that were made that were self issues in terms of what you are choosing to do with basics and others.

A: Michael Bender said trip assurance work well underway, will continue into 2026; Jill Timm said Other Revenue guide down 4% to 6% lags comp due to lower accounts receivable, no reclassifications, pure this year; Michael Bender said Sephora partnership good, adjacencies like moving juniors, getting back to growth focus on product right, progression made but not pinpoint date.

Q: Just on the comps, Jill, you suggested, you know, that we would be building to the flat to down 2% through the year. Maybe just a thought on trying to connect that to your comment on first quarter. Sounds like seasonal goods and some of the holiday decor was the headwind in fourth quarter, but the decor was stronger if the spring seasonals are getting better and the core was stable. How should we think—I am trying to think about trends in first quarter relative to the negative two to flat for the year. And then I am also curious. It sounds like, you know, with the coupon and shifting to expanding the coupon a little bit deeper, as you said, shifting to more of the entry-level price points to drive value, sounds like a good idea, very important. Can you just talk about how you are thinking about the range of outcomes for units versus AUR that could support the negative two to flat comp for the year?

A: Jill Timm said comp guided low end anchored on current performance, spring seasonals started great but small portion, cautious with macro headwinds, investments in depth happen as year progresses, average transaction value relatively flattish, traffic drive important, investments in experience and inventory management help, cautious but feel well positioned entering year.