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Kohl’s serves shoppers seeking moderately priced merchandise, especially middle-income U.S. households. Clothing accounts for most merchandise sales; accessories, including Sephora, are another major category. Customers buy national brands and brands available only at Kohl’s. Its own brands generally sell for less than national brands but leave Kohl’s a larger share of the selling price after merchandise costs.
Most merchandise sales come through stores, while Kohls.com and mobile shopping provide a substantial additional channel. Stores also fulfill online orders and handle returns. The business depends on customers’ willingness and ability to spend, and on having the right goods in stock without excess inventory that must be discounted. Back-to-school and holiday shopping make the latter half of the year particularly important.
Kohl’s also earns revenue from its branded credit-card program, which supports merchandise purchases. An unrelated third party owns the card accounts, and Kohl’s shares in revenue from interest and fees after credit losses. This income depends on customers using the cards and repaying their balances.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Kohl’s results hinge on family apparel spending and inventory discipline, while its Sephora beauty partnership supports accessories, its only growing merchandise category in 2025.
Macy’s competes with Kohl’s for shoppers buying apparel, accessories, beauty and home goods in stores and online. Its sales to value-conscious shoppers are the most relevant comparison for Kohl’s, rather than its premium-luxury business.
Dillard’s competes with Kohl’s for department-store shoppers buying family clothing, footwear, cosmetics and home goods. Its women’s, men’s and children’s clothing sales offer a comparison for Kohl’s apparel departments, all of which lost sales in 2025.
Burlington competes with Kohl’s for value-seeking shoppers buying branded clothing, footwear, accessories and home goods. Watch how it keeps inventory fresh by buying more merchandise during the selling season: that buying model underpins its low-price offer against Kohl’s.
Target competes with Kohl’s for shoppers seeking value in apparel and home goods, but grocery sales make its overall business less dependent on discretionary purchases. Its clothing and home sales are therefore a closer comparison for Kohl’s than its total sales.
Gap’s Old Navy and Gap brands compete with Kohl’s for families buying value-priced casual clothing for adults and children. Old Navy’s value-apparel sales are worth watching alongside Kohl’s women’s, men’s and children’s departments.
American Eagle Outfitters competes with Kohl’s through American Eagle and Aerie, selling casual apparel and accessories to consumers in stores and online. Sales at those two brands offer a comparison for Kohl’s clothing business, rather than its broader home and beauty assortment.
Abercrombie & Fitch and Hollister compete with Kohl’s apparel departments for shoppers’ discretionary clothing spending in stores and online. Watch the channels separately: in fiscal 2025, most Abercrombie-brand sales came online, while most Hollister sales came from stores.
Carter’s supplies children’s clothing for Kohl’s to sell to shoppers, but also sells directly through its own stores and websites, competing with Kohl’s children’s department.
Carter's Inc. earningsCRI
Carter’s report will show how demand for children’s clothing is holding up in a business that both supplies Kohl’s and sells directly to the same shoppers.
Watch Carter’s children’s-clothing sales. Stronger sales would suggest demand that can support Kohl’s category, but would not prove Kohl’s orders or sales rose; weaker sales would point to greater demand pressure for both this supplier and its direct-to-consumer business.
Dillards Inc. earningsDDS
Dillard’s report will show whether department-store shoppers are still spending on apparel, footwear, cosmetics and home goods—the same customers and categories Kohl’s competes for.
Read Dillard’s apparel sales alongside footwear, cosmetics and home goods. Steady or rising apparel sales would suggest firmer demand in categories that overlap with Kohl’s; broad weakness would point to more pressure on retailers seeking the same shoppers, but would not prove Kohl’s sales moved the same way.
Retail Sales MoM (Oct)
Retail sales track how much shoppers are buying; stronger U.S. spending can bring more customers to Kohl’s stores and website and lift merchandise sales, while weaker spending can reduce purchases and revenue.
If retail sales rise, shoppers are spending more, which may support purchases at Kohl’s stores and online; if they fall, moderate-income customers may pull back, weakening traffic, conversion and merchandise revenue.
Kohls Corporation earningsThis company
Kohl’s report will show whether shoppers are returning to its stores and website, and whether inventory discipline can protect gross margin while sales are under pressure.
Read comparable sales and transaction volume alongside gross margin. If sales and transactions recover while margin holds or rises, shoppers are returning without Kohl’s having to rely on heavier discounts. If transactions keep falling and margin weakens, inventory and merchandise-mix improvements are not making up for lost customer demand.
