US omnichannel retailer Kohl’s disclosed better-than-expected financial results for the first quarter (Q1) of fiscal 2025 (FY25), revealing a net loss contraction to $15m compared to the $27m net loss reported in the first quarter of the previous fiscal year.
The loss per diluted share stood at $0.13, an improvement on the $0.24 loss per diluted share recorded during the same period or 2024.
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For the quarter concluded on 3 May 2025, Kohl’s announced net sales of $3.05bn, a 4.1% decrease from the $3.18bn achieved in Q1 FY25. Comparable sales for the quarter also declined 3.9%.
The gross margin rate showed an uptick, reaching 39.9% of net sales – an elevation of 37 basis points over the 39.5% reported in Q1 FY24.
The company reduced its selling, general & administrative (SG&A) expenses by 5.2% compared to the same period of the previous year, to a total of $1.2bn.
SG&A expenses as a portion of total revenue contracted by 32 basis points to 36.0%.
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By GlobalDataKohl’s operating income rose to $60m in Q1 FY25 from $43m in the corresponding period of the previous year, with operating income as a percentage of total revenue improving 58 basis points to 1.9%.
The company’s inventory levels stood at $3.1bn – a 2% increase from the previous year.
Kohl’s interim chief executive officer Michael Bender stated: “Our first quarter performance was ahead of our expectations and the actions we are taking are starting to make progress with early signs of a positive impact.
“Our team is focused and motivated to deliver great products, great value and a great shopping experience to our customers. I want to thank our amazing team of associates for their hard work and dedication. I am excited to lead this next chapter of Kohl’s and build on the momentum we have begun to generate.”
Bender’s appointment as interim CEO followed Ashley Buchanan’s dismissal with cause in early May 2025.
In the full fiscal year 2025, Kohl’s anticipates net sales to decline between 5% and 7%, with comparable sales expected to fall by between 4% and 6%.
The company projects an operating margin between 2.2% and 2.6%.
Diluted earnings per share are forecasted between $0.10 and $0.60.
