Kohl's CEO Michael Bender has indicated that the company does not plan to close additional stores this year, following the closure of 27 locations in 15 states in 2025 as part of efforts to improve financial stability amid declining sales [1]. Bender, who was appointed CEO in November, stated during a post-earnings call that there is no 'grand plan' to either remove or add stores at this time, emphasizing a focus on optimizing existing locations and enhancing store productivity [1]. Kohl's currently operates approximately 1,150 stores, with over 90% reported as profitable. Annual reviews of store performance will continue, primarily from a 'hygiene perspective,' to ensure stores are well-positioned and delivering necessary results. Opportunities for relocation may be considered, but no major changes to the store base are expected [1].
The company has faced challenges from competitors such as Amazon and Ross Stores, impacting its sales performance [1]. CFO Jill Timm highlighted efforts to drive both in-store and digital traffic, noting solid digital traffic in the fourth quarter and ongoing changes to inventory management aimed at attracting more customers to physical locations [1]. Kohl's expects full-year sales to be flat to 2% lower, compared to analysts' estimates of a 0.7% decline to $14.85 billion, based on LSEG data [1]. In the most recent quarter, Kohl's reported sales of $4.97 billion, slightly below analyst expectations of $5.03 billion [1].
Market reaction to the earnings report was positive, with Kohl's stock rising over 3% in Thursday morning trading. However, shares have declined 6.89% in the past five days and are down more than 41% year to date, despite a 42% increase over the past year [1].
CONCLUSION
Kohl's is prioritizing store optimization over expansion or further closures, with leadership signaling stability in its store base for the foreseeable future. While recent sales figures missed analyst expectations, the company is focusing on driving traffic and improving productivity. The market responded positively to the earnings call, but longer-term stock performance remains challenged.