"Goldman Sachs views Kohl's Q4 as a story where the headline earnings number flatters the underlying business. Below-the-line items offset decelerating comp momentum and a sales miss, according to the firm's research note. In other words, expense cuts, favorable tax treatment, and one-time items helped deliver a profit beat that doesn't reflect the health of the core retail operation."
"Comparable sales decelerated to down 2.8% in Q4, and management's own FY2026 guidance calls for net sales and comparable sales in a range of down 2% to flat. For Q1 specifically, the company guided comparable sales down low single digits, meaning the year is expected to start weaker before any improvement materializes."
Goldman Sachs reduced its price target on Kohl's Corporation to $13 from $15 while maintaining a Sell rating following mixed fourth-quarter results. The firm determined that below-the-line items, including expense cuts and favorable tax treatment, masked underlying weakness in the core retail business. Comparable sales decelerated to down 2.8% in Q4, and management guidance projects net sales and comparable sales ranging from down 2% to flat for FY2026, with Q1 expected to show comparable sales down in the low single digits. Kohl's operates approximately 1,150 department stores serving a low- to middle-income customer base facing persistent financial pressure. Goldman's revised target reflects expectations that further deterioration remains the base case for the business.
Read at 24/7 Wall St.
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