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

The topline remained soft, but profitability improved. Diluted EPS reached $1.07 in the fourth quarter, up from $0.43 a year earlier, while full-year diluted EPS rose to $2.38, and adjusted diluted EPS came in at $1.62.

Margin Gains Helped Offset Weak Demand A large part of the earnings improvement came from better margins and tighter cost control. Fourth-quarter gross margin reached 33.1%, up 25 basis points, while full-year gross margin improved to 37.5%, up 34 basis points. Selling, general, and administrative expenses also moved lower.

Fourth-quarter SG&A fell 4.9% to $1.5 billion, while full year SG&A declined 4.1% to $5.1 billion. 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…