KOHLS Corp (KSS) FY2025 10-K Annual Report

Filed: Mar 20, 2025
Consumer Discretionary
Retail-Department StoresSEC EDGAR

KOHLS Corp (KSS) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Mar 20, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

KOHLS Corp FY2025 10-K Analysis

Business Overview

  • Core business model: Operates 1,175 Kohl’s stores plus e-commerce platform selling moderately-priced private and national brand apparel, footwear, beauty, and home products
  • Strategic emphasis on inclusive culture with 8 Business Resource Groups covering 10,000+ members to foster innovation and belonging
  • Average 87,000 associates employed in 2024, with 33,000 full-time and 54,000 part-time, supporting flexible staffing for seasonal demand
  • Digital sales fulfilled through 5 operational e-fulfillment centers; San Bernardino center closed in January 2025
  • Enhanced associate health and wellness benefits including paid parental leave, doula and surrogacy reimbursements, and Wellness Centers across locations

Management Discussion & Analysis

  • Revenue $15.4B in 2024, down 7.2% YoY ($1.2B decrease); Accessories grew 8.8% to $3.06B, driven by Sephora sales +25% ($1.8B total)
  • Gross margin 37.2% in 2024 vs 36.7% in 2023 (+50 bps); SG&A $5.3B down 3.7%, but deleveraged 118 bps as % of revenue
  • Best segment Accessories +8.8% to $3.06B; worst Children's down 11.7% to $1.82B
  • Operating cash flow $648M vs $1.17B in 2023; capex $466M; dividends $222M ($2.00/share); no share repurchases in 2024; reduced debt by $113M
  • 2025 capex guidance $400–425M; dividend cut to $0.125/share quarterly; credit rating downgraded with resulting higher interest costs; risk from CFPB credit card regulations pending litigation

Risk Factors

  • CFPB credit card late fees rule challenged; injunction since May 10, 2024 delays impact on Kohl’s credit card revenue
  • U.S.-only operations exposed to macroeconomic risks affecting moderate-income core customers sensitive to inflation and consumer confidence
  • Supply chain reliant on Asian imports; potential U.S. tariffs or trade policy shifts could materially harm business and liquidity
  • Omnichannel fulfillment vulnerable to third-party shipping delays, especially during peak holiday season sales volume
  • Senior management key-person risk amid labor market challenges and succession uncertainties potentially affecting leadership continuity

KOHLS Corp FY2025 Key Financial Metrics
XBRL

Revenue

$16.2B

-7.2% YoY

Net Income

$109M

-65.6% YoY

Operating Margin

2.7%

-143bp YoY

Net Margin

0.7%

-114bp YoY

ROE

2.9%

-528bp YoY

Total Assets

$13.6B

-3.2% YoY

EPS (Diluted)

$0.98

-65.6% YoY

Operating Cash Flow

$648M

-44.5% YoY

Source: XBRL data from KOHLS Corp FY2025 10-K filing on SEC EDGAR. All figures in USD.

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