Slide 1: Q2 Results Presentation
Q2 Results Presentation August 26, 2026 1
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “anti
Slide 3: Table of Contents
Table of Contents 6 2026 Key Initiatives 10 Q2 2026 Results 15 2026 Outlook 3
Slide 4: CEO comments on second quarter progress
“We are confident that the work we are executing is leading us in the right direction. Our second quarter results reflect the ongoing progress against our initiatives, leading to another improvement in our comparable sales trend. While we are encouraged with the momentum we have made thus far, we kn
Slide 5: Kohl's is building on a solid foundation
Kohl's is building on a solid foundation Convenient Nationwide Great Product from Top Brands Omni-Channel Reach 1,151 Stores 80% of Americans live Largest department store chain in America within 15 miles of a Kohl’s store 20M+ Delivering Great Value Active App Users 1,100+ Sephora @ Kohl’s 60M+ 30M
Slide 6: 2026 Key Initiatives
2026 KEY INITIATIVES .-- |:
Slide 7: Offer a more curated, balanced assortment
Offer a more curated, balanced assortment KEY SIGNS OF PROGRESS FUTURE OPPORTUNITIES Delivered sales improvement across nearly all of lines of business Women’s • Increasing investments in proprietary brand inventory to • Home drove positive comp led by decor and innovation in small electrics meet st
Slide 8: Reestablish Kohl's as a leader in value and quality
Reestablish Kohl’s as a leader in value and quality Unlock the power of proprietary brands and deliver more consistent, competitive value • Proprietary brands serve as the cornerstone of Kohl’s value proposition, offering relevant style and exceptional quality - In Q2, proprietary brands delivered 3
Slide 9: Deliver a Frictionless Experience Across Our Omni-Channel Platforms
Deliver a Frictionless Experience Across Our Omni-Channel Platforms Inventory & Merchandising Optimization • Improving apparel assortment clarity by reducing choice counts by mid-teens percentage to simplify the floor • Restoring trip assurance through improved inventory depth to ensure consistent i
Slide 10: Q2 2026 Results
Q2 2026 RESULTS 10
Slide 11: Q2 2026 Results
Q2 2026 Results Key Financial Results • Q2 Net Sales and Comparable Sales declined (0.9%) versus Q2 2025 • Gross Margin improved 305 basis points in the second quarter - Driven by receipt of approximately $150 million of IEEPA tariff refunds, of which approximately $100 million benefitted Cost of Me
Slide 12: Q2 2026 Gross Margin & SG&A Expense Performance
Q2 2026 Gross Margin & SG&A Expense Performance Gross Margin SG&A Expense Increased 305 bps vs Q2 2025 SG&A as a % of total revenue was flat vs Q2 2025 43.0% 33.0% 39.9% (0.9% ) $1,260M $1,199M $1,188M % Total Revenue 33.8% 33.8% Q2 2025 Q2 2026 Q2 2025 Q2 2026 Q2 2026 Gross Margin Takeaways Q2 2026
Slide 13: Adjusted Leverage
Adjusted Leverage Kohl’s reset leases on the balance sheet following the investment to roll out Sephora to all of our Stores Net Debt + Leases to EBITDAR Leverage (1) • Current Balance Sheet / Lease Rolling 12 months as of Q2 2026 Accounting is inflating our (Dollars in Millions) Unadjusted Adjusted
Slide 14: Q2 2026 Key Metrics
Consolidated Statement of Operations Three Months Ended (Dollars in Millions) August 1, 2026 August 2, 2025 Net Sales $ 3,318 $ 3,347 Total Revenue 3,515 3,546 Gross Margin Rate 43.0% 39.9% SG&A 1,188 1,199 Depreciation 173 175 Operating Income 261 279 Adjusted Operating Income (Non-GAAP)1 261 161 I
Slide 15: 2026 Outlook
2026 OUTLOOK Sone
Slide 16: Raises 2026 Financial Outlook
Raises 2026 Financial Outlook Includes the benefit of IEEPA Tariff refunds received in the second quarter. METRIC FULL YEAR GUIDANCE Net Sales Flat to (1.5%) vs. 2025 Comp Sales Flat to (1.5%) Adjusted 3.5% to 4.0% Operating Margin 1 Adjusted Diluted EPS 1 $1.80 to $2.40 Capital Allocation Outlook •
Slide 17: Strong Balance Sheet provides a critical foundation; capital allocation priorities
Strong Balance Sheet provides us a critical foundation to invest in the business, lead with value for our customers, and return capital to our shareholders Capital Allocation Priorities 1. Invest in the Business Continue to prioritize our investment in the business with $350 million to $400 million
Slide 18: Appendix
APPENDIX Sone
Slide 19: Reconciliation: Comparable Sales
Reconciliation Comparable Sales Three Months Ended Six Months Ended August 1, 2026 August 1, 2026 (Decrease) in Comparable Sales (0.9%) (1.0%) Impact of growth in Marketplace Gross Merchandise Value (“GMV”) on Comparable Sales (1) 0.7% 0.6% (Decrease) in Comparable Sales including Marketplace (0.2%)
Slide 20: Reconciliation: Adjusted EBITDA
Reconciliation Adjusted EBITDA 52 Weeks Ended (Dollars in Millions) August 1, 2026 Net Income (GAAP) $ 270 Provision for income taxes 62 Interest expense, net 260 Depreciation and amortization 697 Impairments, store closing and other costs 4 Adjusted EBITDA (Non-GAAP) $ 1,293 20
Slide 21: Reconciliation: Operating Income
Reconciliation Operating Income Three Months Ended Six Months Ended (Dollars in Millions) August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 Net Income (GAAP) $ 151 $ 153 $ 137 $ 139 Provision for Income Taxes 47 48 44 46 Interest expense, net 63 78 126 154 Operating Income (GAAP) 261 279 3
Slide 22: Reconciliation: Net Income
Reconciliation Net Income Three Months Ended Six Months Ended (Dollars in Millions) August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 GAAP $ 151 $ 153 $ 137 $ 139 Impairments, store closing and other costs 0 11 0 11 (Gain) on legal settlement 0 (129) 0 (129) Income tax impact of items note
Slide 23: Reconciliation: Diluted Earnings Per Share
Reconciliation Diluted Earnings Per Share Three Months Ended Six Months Ended August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 GAAP $ 1.28 $ 1.35 $ 1.18 $ 1.23 Impairments, store closing and other costs 0 0.10 0 0.10 (Gain) on legal settlement 0 (1.14) 0 (1.14) Income tax impact of items
Slide 24: Kohl's
KOHLES