Kohl's recently announced significant downturns in its financial performance, marked by a decrease in sales and earnings for the fiscal year ended February 1, 2025. The company also issued a cautious earnings guidance for 2025, projecting declines in net sales and comparable sales, alongside reduced earnings per share estimates ranging from $0.10 to $0.60. This guidance likely influenced its stock's 31% decline over the past month. The U.S. stock market's broader struggles to rebound from a prolonged sell-off added to the challenges, as uncertainty regarding tariffs and potential economic slowdown affected investor sentiment. The company's quarterly dividend declaration of $0.125 per share, while a positive note, did not offset the impact of these broader issues on its share price. Amid a mixed market environment where major indices like the Nasdaq and S&P 500 have seen significant declines, Kohl's has faced amplified pressure, reflecting both internal and external adversities.

Evaluate Kohl's historical performance by accessing our past performance report.

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Over the five-year period, Kohl's Corporation's total return, including share price and dividends, decreased by 20.12%. This performance reflects significant challenges the company has faced. In March 2025, Kohl's reported a decline in sales and net income for its fiscal year, highlighting struggles with revenue and a drop in net income from US$317 million to US$109 million. Notably, Kohl's underperformed compared to the US market, which reported a positive return of 9% over the past year.

Additionally, the company faced management changes that added to the uncertainty. In November 2024, CEO Tom Kingsbury announced his departure, with Ashley Buchanan stepping in. Furthermore, plans for a partnership with WHP Global in March 2024 and the introduction of Babies “R” Us experiences by fall 2024 were efforts to bolster performance. However, these initiatives, alongside the challenging market environment, have yet to mitigate the long-term decline in total shareholder returns.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:KSS.

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