Kohl’s Announces Q4 and Full Year Fiscal 2025 Financial Results

That helped push fourth-quarter operating income up to $212 million from $126 million, while full-year operating income rose to $624 million from $433 million. A Settlement Lifted the Full Year Result One factor boosted the annual result beyond day-to-day operations.

Kohl’s recorded a $129 million gain tied to a credit card interchange fee lawsuit settlement, which lifted reported operating income and net income for the year. That distinction matters. Reported net income rose to $272 million from $109 million, while adjusted net income came in at $186 million, up from $167 million.

The fourth quarter was cleaner, with diluted EPS of $1.07 on both a reported and an adjusted basis. Cash Flow and Inventory Improved The balance sheet looked healthier at year’s end. Inventory closed the fourth quarter at $2.7 billion, down 7%, showing tighter control over stock as the company worked to protect margins.

Cash generation improved sharply. Operating cash flow reached $1.4 billion for the full year, up from $648 million, while cash and cash equivalents rose to $674 million from $134 million. Borrowings under the revolving credit facility dropped to $0, and the company repaid $353 million…