US retailer Kohl's sales drop 2.8% to $3.4 bn in Q3 FY25

In the third quarter, gross margin as a percentage of net sales was 39.6 per cent, an increase of 51 basis points. Selling, general and administrative (SG&A) expenses decreased 2.1 per cent year-over-year, to $1.3 billion. As a percentage of total revenue, SG&A expenses were 35.3 per cent, an increase of 55 basis points year-over-year.

Operating income was $73 million compared to $98 million in the prior year. As a percentage of total revenue, operating income was 2.1 per cent, a decrease of 61 basis points year-over-year. Adjusted operating income was $77 million compared to $98 million in the prior year. As a percentage of total revenue, adjusted operating income was 2.2 per cent, the company said in a press release.

Net income was $8 million, or $0.07 per diluted share, and adjusted net income was $11 million, or $0.10 per adjusted diluted share. This compares to net income of $22 million, or $0.20 per diluted share, in the prior year.

“We are pleased with Kohl’s third quarter results, marking a third consecutive quarter of delivering top-line and bottom-line performance ahead of our expectations. These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we continue to move in the right direction. We are focused on building on this momentum, as we remain committed to delivering quality products, great value, and a frictionless experience to our customers in an uncertain macroeconomic environment,” Michael J Bender, Kohl’s chief executive officer, said.

“I am very proud of the work our team has accomplished to date, as we continue to operate our company with strong discipline, deliver solid cash flow generation, and maintain a healthy balance sheet. This will serve as a strong foundation as we reposition Kohl’s for future growth,” Bender continued.

For the full year 2025, the company expects a decrease of 3.5-4 per cent in net sales, adjusted operating margin to be between 3.1-3.2 per cent and adjusted diluted EPS in the range of $1.25 to $1.45.

ALCHEMPro News Desk (RR)