Slide 1: Q3 Results Presentation
Q3 Results Presentation November 25, 2025 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 2025 Areas of Focus 10 Q3 2025 Results 15 2025 Outlook 3
Slide 4: CEO comments on third quarter results
“We are pleased with Kohl’s third quarter results, marking a third consecutive quarter of delivering top-line and bottom-line performance ahead of our expectations. These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we cont
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 1,153 Stores 80% of Americans live Largest department store chain in America (1) within 15 miles of a Kohl’s store 20M+ Delivering Great Value Active App Users 1,100+ Sephora @ Kohl’s (1)
Slide 6: 2025 Areas of Focus
2025 AREAS OF FOCUS =: |
Slide 7: Offer a Curated, More Balanced Assortment That Fulfills Needs Across All Customers
Offer a Curated, More Balanced Assortment That Fulfills Needs Across All Customers Rebalance our assortment to provide improved brand clarity and purpose • Delivered positive growth in our Juniors and Petites categories, both essential components of our Women’s business, through investments made in
Slide 8: Reestablish Kohl's as a Leader in Value and Quality
Reestablish Kohl’s as a Leader in Value and Quality Elevating our Proprietary Brands • Proprietary brands are essential to the value Kohl’s offers, delivering exceptional quality and relevance our customers expect • Proprietary brands grew +1% in Q3 • Building on the success of established brands li
Slide 9: Enhance our Omni-Channel Platform to Deliver a Frictionless Experience
Enhance our Omni-Channel Platform to Deliver a Frictionless Experience Optimizing Our Store Layout • Juniors and Accessories continue to benefit from their proximity to Sephora shops. Both categories delivered positive sales growth in Q3, capitalizing on cross-shopping from the Sephora customers. •
Slide 10: Q3 2025 Results
Q3 2025 RESULTS Sone
Slide 11: Q3 2025 Summary
Q3 2025 Summary Key Takeaways • Q3 Net Sales declined (2.8%) versus Q3 2024 and Comparable Sales decreased (1.7%) • Gross Margin increased 51 bps to last year driven by greater penetration of proprietary brands, category mix benefits, and strong inventory management • SG&A expense declined (2.1%) to
Slide 12: Q3 2025 Gross Margin & SG&A Expense Performance
Q3 2025 Gross Margin & SG&A Expense Performance Gross Margin SG&A Expense Increased 51 bps vs Q3 2024 Deleveraged (55 bps) vs Q3 2024 (2.1 %) 39.6% $1,291M 39.1% $1,263M % Total Revenue 34.8% 35.3% Q3 2024 Q3 2025 Q3 2024 Q3 2025 Q3 2025 Gross Margin Takeaways Q3 2025 SG&A Takeaways • Category mix b
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 Q3 2025 Accounting is inflating our (Dollars in Millions) Unadjusted Adjusted
Slide 14: Q3 2025 Key Metrics
Consolidated Statement of Operations Three Months Ended (Dollars in Millions) November 1, 2025 November 2, 2024 Net Sales $ 3,407 $ 3,507 Total Revenue 3,575 3,710 Gross Margin Rate 39.6% 39.1% SG&A 1,263 1,291 Depreciation 176 184 Adjusted Operating Income (Non-GAAP) 1 77 98 Interest Expense, net 7
Slide 15: 2025 Outlook
2025 OUTLOOK Sone
Slide 16: 2025 Holiday Preview
2025 Holiday Preview • Well-positioned to deliver the great experience that customers expect in order to make Kohl’s a go-to destination for gifting and holiday shopping • Capitalize on gifting opportunities by leaning into Sephora and Jewelry gift sets, expanding our compelling holiday apparel asso
Slide 17: Updated 2025 Financial Outlook
Updated 2025 Financial Outlook METRIC FULL YEAR GUIDANCE Net Sales (3.5%) to (4%) vs. 2024 Comp Sales (2.5%) to (3%) Adjusted 3.1% to 3.2% Operating Margin 1 Adjusted Diluted EPS 1 $1.25 to $1.45 Capital Allocation Outlook • Capex: Approximately $400 million • Dividend: $0.125 dividend payable on De
Slide 18: Capital allocation priorities support our goals of optimizing balance sheet flexibility
Capital allocation priorities support our goals of optimizing balance sheet flexibility Invest in the Business Capex of approximately $400 million will include investments to complete the Sephora rollout, expand impulse queuing fixtures, and enhance omni- channel experience Optimizing Return of Cash
Slide 19: Appendix
APPENDIX Sone
Slide 20: Reconciliation
Reconciliation Adjusted EBITDA 52 Weeks Ended (Dollars in Millions) November 1, 2025 Net Income (GAAP) $ 194 Provision for income taxes 41 Interest expense, net 303 Depreciation and amortization 709 (Gain) on legal settlement (129) Impairments, store closing and other costs 91 Adjusted EBITDA (Non-G
Slide 21: Reconciliation
Reconciliation Operating Income Three Months Ended Nine Months Ended (Dollars in Millions) November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Net Income (GAAP) $ 8 $ 22 $ 147 $ 61 Benefit (provision) for Income Taxes (10) 0 36 1 Interest expense, net 75 76 229 245 Operating Income (
Slide 22: Reconciliation
Reconciliation Net Income Three Months Ended Nine Months Ended (Dollars in Millions) November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 GAAP $ 8 $ 22 $ 147 $ 61 Impairments, store closing and other costs 4 0 15 0 (Gain) on legal settlement 0 0 (129) 0 Income tax impact of items note
Slide 23: Reconciliation
Reconciliation Diluted Earnings Per Share Three Months Ended Nine Months Ended November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 GAAP $ 0.07 $ 0.20 $ 1.30 $ 0.55 Impairments, store closing and other costs 0.04 0.00 0.14 0.00 (Gain) on legal settlement 0.00 0.00 (1.14) 0.00 Income t
Slide 24: Kohl's
KOHLES