Kohl’s Corp. is showing signs that the retail giant is turning things around compared with this time last year.
The Menomonee Falls-based company reported on May 28 it had a net quarterly loss of $14 million which is slightly better than the $15 million loss it had at this point in 2025. Kohl’s said sales were down 1.7% for the quarter.
In an interview with the Milwaukee Journal Sentinel, Kohl’s CEO Michael Bender said the company is pleased with the start of 2026.
“It was our best (comparable) sales performance in over four years,” Bender said. “We’re getting a lot closer to being able to get to growth and I feel like we’re knocking on the door.”
Kohl’s is focused on listening to customers and “letting them guide where we take the business,” he said.
“If you get the product right, you will have a chance to have a good business,” Bender said. “It’s not just the price is right but the quality, the style is right and our customers are responding to that.”
While it’s not unusual for companies to borrow money for operations, Kohl’s reported its borrowing under a revolving credit line to be $0, which is significantly lower than at this point last year when it borrowed $545 million.
“It’s an indication of the strengthening of the overall performance of the business,” Bender said. “We bought back some of our debt as well. So we’re cleaning up the balance sheet.”
Kohl’s reported its proprietary brand sales were up 6% in the quarter which helped drive its positive momentum.
Bender said those proprietary brands are items that “you can only find in Kohl’s.”
“They offer an opportunity for the customer to engage with us at an opening price point and bringing that into the mix has been a real positive for us as well, particularly against the backdrop of the economy that we’re facing right now,” Bender said.
“We’re focused on providing value to customers and they’re responding in kind.”
Kohl’s is projecting sales this year to be flat or down 2% for 2026.
The results come after Kohl’s reported a $272 million profit in 2025 despite sales being down 4% for the year.
Sephora ‘underperformed’ in quarter
For the last five years Kohl’s has leaned on its partnership with Sephora and during that time the company has delivered, however it did not meet company expectations during the first quarter.
Sephora at Kohl’s “underperformed in the quarter” with sales in low single digits.
Jill Timm, Kohl’s chief financial officer, said on the earnings call with analysts that the company expects Sephora to stay “with the company guidance.”
“We do have a lot of newness that we’re excited about but there’s some key categories that we need to make some moves on,” Timm said.
Kohl’s was hoping to grow Sephora to a $2 billion business by the end of 2025, and Bender said it is just below that mark.
“It brings in a younger, more diverse, more digitally savvy customer and introduces them to our business,” Bender said.
The company is expanding its makeup offering after launching MAC in March, and it will roll out the product to all stores by the end of the year.
“We continue to lean into fragrance which is an outperformer for us,” Timm said.
The company also underperformed on skincare, but there are new products coming into that category also.
“It’s going to take a little bit more time before that (Sephora) gets back to leading the company,” Timm said. “But we definitely expect it to be more with the company as the year progresses.”
Stock jumped up in response to earnings
Wall Street responded favorably to Kohl’s’ earnings and the stock rose more than 20% after the markets opened from $12.93 per share to $16.12. It has since gone down slightly to about $15.33 per share which is still roughly 18% above where it closed on May 27.
Bender said Kohl’s needs to continue to understand the consumer and “riding along with the trends.”
“If we miss that, then that’s a concern. But honestly, we’re so dialed in on trying to understand and stay connected to how consumers are moving,” Bender said.
This story has been updated with additional information.
This article originally appeared on Milwaukee Journal Sentinel: Kohl’s shows signs of recovery in latest earnings
Reporting by Ricardo Torres, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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