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5 Must-Read Analyst Questions From Kohl's’s Q2 Earnings Call

By: StockStory

September 03, 2025 at 01:31 AM EDT

KSS Cover Image

Kohl’s delivered second-quarter results that received a strong positive reaction from the market, driven largely by better-than-expected margin expansion and non-GAAP earnings performance. Management pointed to the company’s focus on proprietary brands and a disciplined approach to inventory and expenses as key contributors. CEO Michael Bender highlighted that proprietary brands, particularly in women’s and accessories, saw sequential improvement, while cost controls kept margins resilient even as overall sales declined. Bender noted, “The improved performance was driven by our digital business and our proprietary brand sales, both of which performed positively in July.”

Is now the time to buy KSS? Find out in our full research report (it’s free).

Kohl's (KSS) Q2 CY2025 Highlights:

Revenue: $3.55 billion vs analyst estimates of $3.50 billion (5% year-on-year decline, 1.4% beat)
Adjusted EPS: $0.56 vs analyst estimates of $0.30 (88.6% beat)
Adjusted EBITDA: $336 million vs analyst estimates of $307 million (9.5% margin, 9.4% beat)
Adjusted EPS guidance for the full year is $0.65 at the midpoint, beating analyst estimates by 29.5%
Operating Margin: 7.9%, up from 4.4% in the same quarter last year
Locations: 1,153 at quarter end, down from 1,176 in the same quarter last year
Same-Store Sales fell 4.2% year on year, in line with the same quarter last year
Market Capitalization: $1.81 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Kohl's’s Q2 Earnings Call

Mark R. Altschwager (Baird) asked which strategic initiatives are driving the largest top-line impact. CEO Michael Bender emphasized proprietary brands and coupon eligibility, while CFO Jill Timm pointed to investments in women’s as a near-term growth lever.
Charles P. Grom (Gordon Haskett) inquired about the pace and impact of adding brands to coupon eligibility. Timm responded that digital channels saw immediate benefit, and in-store impact is increasing through marketing and signage.
Paul Lawrence Lejuez (Citigroup) questioned the drivers of comp improvement and the impact of tariffs. Timm clarified that traffic gains, not ticket size, led July’s improvement and that proprietary brand penetration and sourcing flexibility help offset tariff effects.
Oliver Chen (TD Securities) probed the timeline for returning to positive comparable sales and which initiatives might yield faster benefits. Bender declined to set a date, noting proprietary brands and category mix changes are likely short-term drivers, with broader assortment curation as a longer-term effort.
Lorraine Corrine Maikis Hutchinson (Bank of America) asked about trends in credit income. Timm explained that recent co-brand card launches provided a temporary lift, but core credit customer activity remains down, impacting future revenue from the credit portfolio.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will closely monitor (1) the pace of proprietary brand recovery and customer response to expanded coupon eligibility, (2) the effectiveness of store layout and digital investments in driving traffic and engagement, and (3) management’s ability to maintain margin flexibility amid tariffs and promotional pressures. Continued execution on inventory discipline and the scaling of omnichannel initiatives will also be critical to track.

Kohl's currently trades at $16.06, up from $13.04 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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5 Must-Read Analyst Questions From Kohl's’s Q2 Earnings Call

Kohl's (KSS) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From Kohl's’s Q2 Earnings Call

Catalysts in Upcoming Quarters

High-Quality Stocks for All Market Conditions

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