Kohl’s ended fiscal 2025 in a stronger financial position than it started, even as sales remained under pressure. Fourth quarter net sales fell 3.9% to $5.0 billion , while comparable sales were down 2.8% . For the full year, net sales declined 4.0% to $14.8 billion , with comparable sales down 3.1% .
The topline remained soft, but profitability improved. Diluted EPS reached $1.07 in the fourth quarter, up from $0.43 a year earlier, while full-year diluted EPS rose to $2.38, and adjusted diluted EPS came in at
$1.62 . Margin Gains Helped Offset Weak Demand A large part of the earnings improvement came from better margins and tighter cost control. Fourth-quarter gross margin reached 33.1% , up 25 basis points , while full-year gross margin improved to 37.5% , up 34 basis points .
Selling, general, and administrative expenses also moved lower. Fourth-quarter SG&A fell 4.9% to $1.5 billion , while full year SG&A declined 4.1% to $5.1 billion . That helped push fourth-quarter operating income up to $212 million from $126 million , while full-year operating income rose to $624 million from $433 million .
A Settlement Lifted the Full Year Result One factor boosted the annual result beyond day-to-day operations. Kohl’s recorded a $129 million gain tied to a credit card interchange fee lawsuit settlement, which lifted reported operating income and net income for the year. That distinction matters.
Reported net income rose to $272 million from $109 million , while adjusted net income came in at $186 million , up from $167 million . The fourth quarter was cleaner, with diluted EPS of $1.07 on both a reported and an adjusted basis. Cash Flow and Inventory Improved The balance sheet looked…
