Kohl’s Stock Tumbles After Dire 2025 Financial Outlook, Mixed Q4 2024 Earnings

Kohl’s appears to be facing serious headwinds during the execution of its planned turnaround, according to CNBC, with the retailer sharing a gloomy projection for 2025 alongside a decidedly mixed Q4 2024 earnings report.

For the quarter ending Feb. 1, Kohl’s reported a 9.4% decrease in net sales (to $5.2 billion) year-over-year, as a March 11 company press release indicated. Quarterly comparable sales trended downward by 6.7% as compared to the year-ago period, and SG&A (selling, general, and administrative) expenses as a percentage of total revenue were 28.5% ($1.5 billion), an increase of 1.48% — although the total amount spent did decrease by 4.5%.

There was a bit of a silver lining, however. Kohl’s did post both a revenue beat ($5.18 billion versus $5.15 billion expected) as well as an earnings beat (EPS of $0.95 adjusted versus $0.73 expected).

Recently installed CEO Ashley Buchanan spoke to some of the frustrations coming to the fore concerning the retailer’s traditional customer.

“A lot of the issues were probably self-inflicted over many years of decisions,” Buchanan said. “We have a very loyal customer. When I toured stores, all I heard was how much they love Kohl’s. And what I realized is we’re kind of making it hard for them to love us.”

Buchanan cited a growing list of exemptions regarding promotional coupons, a sense of increased friction, and lack of attention paid to previously performing categories such as proprietary brands and fine jewelry as driving some of the dissatisfaction.

Kohl’s Stock Nosedives After 2025 Sales Projections Spook Investors

In tandem with the quarterly earnings report, Kohl’s also gestured toward its prospects over the course of 2025 — and the picture being painted did not look healthy.

In terms of net sales, Kohl’s projects a decline of between 5% and 7%, and regarding comparable sales, a decline of between 4% and 6% is expected. Diluted EPS was projected to come in at between $0.10 and $0.60.

Kohl’s shares took a beating on March 11, closing down 24%. That trend continued into March 12, and as of 3:18 p.m. ET, share price had tumbled by a further 5.36%, resting at $8.66.