Kohl's Corporation (NYSE: KSS) saw its stock plunge as much as 9% in premarket trading on Tuesday, March 10, 2026, following the release of disappointing fourth-quarter earnings and a soft full-year outlook. The retailer reported Q4 net sales of $4.97 billion, a 3.9% year-over-year decline that missed Wall Street estimates of $5.02–$5.03 billion.
Comparable sales fell 2.8%, nearly double the 1.5% decline analysts had forecast. While adjusted earnings per share (EPS) of $1.07 beat the consensus estimate of 86 cents, the significant revenue miss overshadowed this positive metric. For the full fiscal year 2026, Kohl's guided for comparable net sales to be flat to down 2%, which is below analyst expectations of a 0.7% decline. Adjusted EPS guidance was set at a wide range of $1.00 to $1.60, with a midpoint of $1.30 falling below the $1.39 consensus.
New CEO Michael Bender, who took the permanent role in November 2025, acknowledged the quarter was "softer than expected" and described the company as "resetting its foundation," signaling an ongoing turnaround effort. The challenges are underscored by foot traffic data from Placer.ai, which showed visits to Kohl's stores dropped 5% during the October-to-December period, while rival Ross Stores saw an 11.9% increase.
Investment firm Evercore ISI issued a bearish research note on the same day, stating it remains "unimpressed" and views the post-earnings stock movement as a "relief rally" rather than the start of a sustainable recovery. The firm criticized Kohl's recent strategic pivot to attract budget-conscious shoppers through expanded coupons and private labels, noting this strategy "appears to have lost ground in the fourth quarter."
Evercore ISI highlighted operational failures, including challenges with "restoring trip assurance"—ensuring customers don't leave empty-handed—particularly in small-format stores due to poor inventory depth. The firm recommends investors use any post-earnings price surge as an opportunity to sell, citing a lack of clear catalysts for growth, no plans for share buybacks or debt reduction, and guidance pointing to declining same-store sales and lower EBIT margins.
The stock, which had risen around 62% over the past 12 months partly due to a meme-stock surge, is now down roughly 28% year-to-date in 2026.
