Slide 1: Q2 Results Presentation
Q2 Results Presentation August 27, 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 Q2 2025 Results 15 2025 Outlook 3
Slide 4: Kohl's second quarter performance is a testament to the progress we are making
“Kohl’s second quarter performance is a testament to the progress we are making against our 2025 initiatives. This resulted in sales performance that came in ahead of our expectations. While it is clear that these initiatives are beginning to resonate with our customers, our team remains focused on
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 continued growth in our jewelry business after investing in fashion jewelry inventory and establishing a destination for accessories i
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 play an instrumental role in our value proposition, offering quality products at a great value • Proprietary Brands outperformed the company in Q2, showing 500 basis points of progressive improv
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 • Continue to enhance customer proposition by adjusting product flows and adjacencies • Capitalized on cross-shopping opportunities in Accessories & Juniors following store layout adjustments • Relocat
Slide 10: Q2 2025 Results
Q2 2025 RESULTS Sone
Slide 11: Q2 2025 Summary
Q2 2025 Summary Key Takeaways • Q2 Net Sales decreased (5.1%) versus Q2 2024 and Comparable Sales declined (4.2%) • Gross Margin increased 28 bps to last year driven by greater penetration of proprietary brands, category mix benefit and strong inventory management • SG&A expense declined (4.1%) to l
Slide 12: Q2 2025 Gross Margin & SG&A Expense Performance
Q2 2025 Gross Margin & SG&A Expense Performance Gross Margin SG&A Expense Increased 28 bps vs Q2 2024 Deleveraged (32 bps) vs Q2 2024 (4.1 %) 39.6% 39.9% $1,250M $1,199M % Total Revenue 33.5% 33.8% Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2025 Gross Margin Takeaways Q2 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 Q2 2025 Accounting is inflating our (Dollars in Millions) Unadjusted Adjusted
Slide 14: Q2 2025 Key Metrics
Consolidated Statement of Operations Three Months Ended (Dollars in Millions) August 2, 2025 August 3, 2024 Net Sales $ 3,347 $ 3,525 Total Revenue 3,546 3,732 Gross Margin Rate 39.9% 39.6% SG&A 1,199 1,250 Depreciation 175 188 Adjusted Operating Income (Non-GAAP) 1 161 166 Interest Expense, net 78
Slide 15: 2025 Outlook
2025 OUTLOOK Sone
Slide 16: Updated 2025 Financial Outlook
Updated 2025 Financial Outlook METRIC FULL YEAR GUIDANCE Net Sales (5%) to (6%) vs. 2024 Comp Sales (4%) to (5%) Adjusted 2.5% to 2.7% Operating Margin 1 Adjusted Diluted EPS 1 $0.50 to $0.80 Capital Allocation Outlook • Capex: Approximately $400 million • Dividend: $0.125 dividend payable on Septem
Slide 17: 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 18: Appendix
APPENDIX Sone
Slide 19: Reconciliation
Reconciliation Adjusted EBITDA 52 Weeks Ended (Dollars in Millions) August 2, 2025 Net Income (GAAP) $ 208 Provision for income taxes 51 Interest expense, net 304 Depreciation and amortization 717 (Gain) on legal settlement (129) Impairments, store closing and other costs 87 Adjusted EBITDA (Non-GAA
Slide 20: Reconciliation
Reconciliation Operating Income Three Months Ended Six Months Ended (Dollars in Millions) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024 Net Income (GAAP) $ 153 $ 66 $ 139 $ 39 Provision for Income Taxes 48 14 46 1 Interest expense, net 78 86 154 169 Operating Income (GAAP) 279 166 339
Slide 21: Reconciliation
Reconciliation Net Income Three Months Ended Six Months Ended (Dollars in Millions) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024 GAAP $ 153 $ 66 $ 139 $ 39 Impairments, store closing and other costs 11 0 11 0 (Gain) on legal settlement (129) 0 (129) 0 Income tax impact of items noted
Slide 22: Reconciliation
Reconciliation Diluted Earnings Per Share Three Months Ended Six Months Ended August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024 GAAP $ 1.35 $ 0.59 $ 1.23 $ 0.35 Impairments, store closing and other costs 0.10 0.00 0.10 0.00 (Gain) on legal settlement (1.14) 0.00 (1.14) 0.00 Income tax impa
Slide 23: Kohl's
KOHLES