Kohl’s reports a net loss and falling comparable sales amid broader weakness in mid-market retail demand.
Kohl’s reported a $14 million net loss in Q1 2026 as comparable sales fell 1% year over year, reflecting ongoing struggles to attract consumers. Operating income also dropped 23%, underscoring pressure on mid-market retailers amid shifting spending patterns.
Customer visits to Kohl’s stores declined 4.6% in the quarter, according to Placer.ai data, as the department store sector faces a widening gap between premium and mid-market chains. Analysts note consumers are prioritizing brands with distinct experiences, leaving less differentiated retailers vulnerable.
CEO Michael Bender acknowledged dissatisfaction with performance during an earnings call, signaling further strategic adjustments ahead.