Shares of the apparel retailer tumbled 17% in premarket trading as it also posted a steeper-than-expected fall in holiday-quarter comparable sales.
Kohl's joins larger rival Macy's (M.N) and big-box retailers Walmart (WMT.N) and Target (TGT.N) in tempering expectations as U.S. inflation risks rise and recession fears mount amid a chaotic implementation of President Donald Trump's tariffs.
The uncertainty adds to Kohl's woes as sales have been under pressure over the last three years with consumers turning to cheaper options at discount retailers including TJ Maxx parent TJX Cos (TJX.N).
Menomonee Falls, Wisconsin-based Kohl's expects 2025 comparable sales to decline 4% to 6%, compared with estimates for a 0.9% drop, according to data compiled by LSEG.
Earnings per share is projected in the range of 10 cents to 60 cents, compared with estimates of $1.23.
New boss Ashley Buchanan has rolled out layoffs and store closures since taking charge in January as part of a revamp, while Kohl's has sought to mitigate the impact of missteps last year that worsened a sales drag heading into the holiday season.
Under his predecessor, Tom Kingsbury, Kohl's had exited from product categories such as fine jewelry to prioritize opening Sephora shops. Meanwhile, reduced private-label apparel inventory pushed value-focused shoppers to rivals.
Customer visits to Kohl's stores fell 4.4% on an average between November and January, according to data from Placer.ai. In comparison, discount retailers Burlington and TJX recorded strong traffic gains.
Kohl's fourth-quarter same-store sales fell 6.7%, compared with estimates of a 6.2% drop. It earned 95 cents per share on an adjusted basis, above estimates of 73 cents.
Meanwhile, footwear retailer Dick's Sporting Goods (DKS.N) shares fell 5% before the bell following a dour 2025 outlook for sales and profit.
