Executive Summary
Kohls Corporation reported QQ2 2024 results that reflect a challenging consumer backdrop and a highly levered balance sheet. Revenue declined to $3.732 billion, down 37.34% year over year, while QoQ revenue rose 10.35% to reflect some seasonal improvement from Q1 to Q2. Gross profit reached $1.416 billion, yielding a gross margin of 37.94%, but operating income was $166 million (4.45% margin) and net income was $66 million ($0.59 per share). The year‑over‑year deterioration in profitability was broad across the income statement, with net income down 64.5% YoY, though the quarter showed a notable QoQ inflection in operating profitability and EPS (QoQ EPS growth of 345.8%).
Key Performance Indicators
QoQ: 10.35% | YoY:-37.34%
QoQ: 11.41% | YoY:-25.83%
QoQ: 286.05% | YoY:-44.48%
QoQ: 344.44% | YoY:-64.52%
QoQ: 345.83% | YoY:-65.09%
Key Insights
Revenue: $3.732B, YoY -37.34%, QoQ +10.35%. Gross Profit: $1.416B, Margin 37.94%, YoY -25.83%, QoQ +11.41%. EBITDA: $354M, EBITDA Margin ≈ 9.49%. Operating Income: $166M, Margin 4.45%, YoY -44.48%, QoQ +286.05%. Net Income: $66M, Margin 1.77%, YoY -64.52%, QoQ +344.44%. EPS: $0.59, YoY -65.09%, QoQ +345.83%....
Financial Highlights
Revenue: $3.732B, YoY -37.34%, QoQ +10.35%. Gross Profit: $1.416B, Margin 37.94%, YoY -25.83%, QoQ +11.41%. EBITDA: $354M, EBITDA Margin ≈ 9.49%. Operating Income: $166M, Margin 4.45%, YoY -44.48%, QoQ +286.05%. Net Income: $66M, Margin 1.77%, YoY -64.52%, QoQ +344.44%. EPS: $0.59, YoY -65.09%, QoQ +345.83%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.73B |
-37.34% |
10.35% |
| Gross Profit |
1.42B |
-25.83% |
11.41% |
| Operating Income |
166.00M |
-44.48% |
286.05% |
| Net Income |
66.00M |
-64.52% |
344.44% |
| EPS |
0.59 |
-65.09% |
345.83% |
Key Financial Ratios
operatingProfitMargin
4.45%
operatingCashFlowPerShare
$2.29
freeCashFlowPerShare
$1.27
dividendPayoutRatio
84.8%
Management Commentary
No earnings call transcript was provided in the data set. As such, there are no management quotes available to anchor the highlights. The analysis below draws directly on disclosed results and acknowledged balance sheet and cash flow items. Investors should monitor management commentary in subsequent releases for specifics on store optimization, cost structure actions, and deleveraging plans.
Forward Guidance
The data set does not include explicit forward guidance from Kohls management for QQ3/2024 or beyond. Given the substantial leverage (total debt of $7.478B and net debt of $7.247B) and modest interest coverage (~1.93x), the near-term outlook hinges on debt reduction, ongoing cost discipline, and improved working capital. In the absence of formal guidance, a prudent stance is to anticipate incremental deleveraging progress, potential margin stabilization through mix and private-label enhancements, and continued cash flow generation supported by a leaner cost base. Investors should monitor: (1) progress on debt reduction and covenant stability, (2) inventory turnover and working capital efficiency, (3) evolution of gross margins via pricing, promotions, and private-label strategy, and (4) any strategic changes to store footprint and omnichannel investments.