"The American retail landscape is littered with the corpses of once-dominant chains that failed to adapt. Well ahead of the 2026 holiday season, three household names-Dollar Tree ( NASDAQ: DLTR), Kohl's ( NYSE: KSS), and Macy's ( NYSE: M)-are flashing warning signs that suggest they could join that list before year's end. Despite recent earnings beats and management optimism, the underlying fundamentals tell a story of retailers running out of runway."
"Kohl's posted its third consecutive quarter of beating expectations in Q3 FY2026 (reported November 2025), with revenue of $3.58 billion and adjusted EPS of $0.10. CEO Michael Bender, appointed after serving as interim since May 2025, declared the company was "moving in the right direction." The numbers tell a different story. Revenue declined 2.8% year-over-year, net income collapsed 63.64% to just $8 million, and cash reserves dropped 17.24% to $144 million."
Consumer sentiment sits at 57.9, below the recessionary threshold of 60, while retail sales growth has stalled at 3.3% year-over-year and December 2025 sales were unchanged month-over-month. Three large retailers—Dollar Tree, Kohl's, and Macy's—face mounting pressure from weak top-line momentum and deteriorating cash positions. Kohl's reported Q3 FY2026 revenue of $3.58 billion and adjusted EPS of $0.10, but revenue fell 2.8% year-over-year, net income plunged 63.64% to $8 million, and cash reserves declined to $144 million. Insider transactions and a 1.24% profit margin leave little margin for error. Dollar Tree appears healthier on the surface.
Read at 24/7 Wall St.
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