Kohl's Reports $272M Profit in 2025 Despite Sales Decline

Retailer focuses on stabilizing operations and improving cash flow during challenging year.

Published on Mar. 10, 2026

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Kohl's Corporation reported a $272 million profit for the full year 2025, up from $186 million in 2024, despite a 3.9% sales decline in the fourth quarter. The company emphasized progress in stabilizing the business and strengthening operations, with improved operating cash flow of $1.4 billion compared to $648 million in 2024. CEO Michael Bender said Kohl's is 'ending 2025 in a stronger position than we started' after a year focused on resetting the company's foundation.

Why it matters

Kohl's performance in 2025 highlights the challenges facing traditional brick-and-mortar retailers as they navigate shifting consumer preferences and the ongoing impact of the pandemic. The company's ability to maintain profitability and improve cash flow despite declining sales suggests progress in its efforts to stabilize operations and position itself for a stronger future.

The details

For the full year 2025, Kohl's reported a profit of $272 million, up from $186 million in 2024. The company experienced a 3.9% sales decline in the fourth quarter, continuing a multi-year trend of lower sales. Just under a year ago, Kohl's announced the closure of 27 stores across the country, including the location in Boise's Towne Square Mall. However, the company was able to improve its operating cash flow to $1.4 billion, compared to $648 million in 2024.

  • Kohl's reported a $125 million profit for the final quarter of 2025, compared to $48 million during the same time the previous year.
  • In April 2025, the Kohl's store at 400 N. Milwaukee Street in Boise's Towne Square Mall closed.

The players

Kohl's Corp.

An American department store retail chain that is focused on selling moderately priced private label and national brand apparel, shoes, accessories, beauty, and home products.

Michael Bender

The CEO of Kohl's Corporation, who was appointed to the role in November 2025 after serving as interim CEO since May 2025.

Ashley Buchanan

The former CEO of Kohl's Corporation who was fired in May 2025 for failing to disclose a conflict of interest regarding a personal relationship with a potential contractor.

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What they’re saying

“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.”

— Michael Bender, CEO, Kohl's Corporation (idahobusinessreview.com)

“In 2025, we made meaningful progress, despite our Q4 topline coming in softer than our expectations. We were able to manage the business with discipline, deliver improved earnings, and generate meaningful cash flow, all of which helped us strengthen our balance sheet.”

— Michael Bender, CEO, Kohl's Corporation (idahobusinessreview.com)

What’s next

For 2026, Kohl's expects sales to be flat, or down roughly 2%, which if those projections are accurate, would be a welcome shift in performance.

The takeaway

Kohl's ability to maintain profitability and improve cash flow despite declining sales in 2025 suggests the retailer's efforts to stabilize operations and strengthen its foundation are starting to pay off, even as it navigates the ongoing challenges facing traditional brick-and-mortar stores.