Kohl’s will not be closing more stores in 2026, the company said after reporting mixed results that left investors cautiously relieved.
On March 10, Kohl’s released its 2026 earnings report showing that while sales continue to slide, profits beat many expectations. The company closed 27 locations across 15 states last year as part of a cost-cutting effort, but CEO Michael Bender made it clear on the earnings call that another round of closures is not planned right now. “I would not anticipate any sort of grand plan of saying we’re taking stores out or adding stores at this point. The focus for us is actually on optimizing what we already have and we’ll be focused on making sure that we continue to push the stores’ productivity going forward,” Bender said.
Kohl’s operates roughly 1,150 stores today, and management says more than 90% are profitable. The 2025 closures targeted underperforming locations flagged after a 7.2% sales decline the prior year and represented less than 3% of the company’s footprint.
Still, the sales slump persists. Q4 net sales fell 3.9% to $5.0 billion, with comparable sales down 2.8%. Full-year net sales were $14.8 billion, a 4% decline from the prior year. CFO Jill Timm summed up the core problem bluntly: “Our issue continues to be traffic.” Despite that, tighter inventory and expense controls helped lift Q4 profit to $125 million and drove EPS to $1.07, up from $0.43 a year earlier — outcomes that provided a temporary boost to investor confidence.
Bender framed the past year as a reset: “We are ending 2025 in a stronger position than we started, with important work still ahead of us. Over the past year, our efforts have been focused on resetting our foundation. This focus is intended to stabilize the business and strengthen our operational ability to build for a stronger future.” He also warned the path forward won’t be linear.
Market observers remain skeptical. Neil Saunders, managing director of GlobalData, called the performance “one of the weakest in mainstream retail,” noting Kohl’s sales are down nearly 24% since 2019 even after accounting for gains from Sephora shop-in-shops.
For fiscal 2026 the company is guiding to sales that are down 2% to flat. Kohl’s strategy is to double down on value — expanding proprietary brands and increasing low-price impulse items to drive traffic back into stores.
Why this matters to crypto-focused investors: retail results like Kohl’s are a read on consumer demand, pricing pressure, and payment trends that can influence broader market sentiment. Kohl’s decision to pause further closures while prioritizing productivity and margin control is a defensive move aimed at stabilizing the business—one to watch if you’re tracking how traditional retail is adapting in a volatile consumer environment.
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