Why BofA Sees Kohl’s (KSS) Facing a Tougher Road to a Real Turnaround

Kohl’s Corporation (NYSE:KSS) is one of the stocks most affected by inflation.

On March 12, 2026, BofA Securities analyst Lorraine Hutchinson maintained an Underperform rating on Kohl’s and cut the price target to $15 from $18 after the retailer’s fourth-quarter trends softened. Hutchinson said the fourth-quarter comparable-sales deceleration pointed to a tougher fiscal 2026 setup and argued that a real inflection in the business could require additional investment. BofA also trimmed its fiscal 2026 EPS estimate to $1.26 from $1.27 and reduced its fiscal 2027 forecast to $1.06 from $1.50.

The note followed Kohl’s March 10 fiscal 2025 results. The company reported fourth-quarter net sales of $4.97 billion, down 3.9% year over year, with comparable sales down 2.8%.

For the full year, net sales fell 4.0%, and comparable sales declined 3.1%. Still, fourth-quarter diluted EPS came in at $1.07, while Kohl’s introduced fiscal 2026 guidance that called for net sales to range from flat to down 2% and adjusted diluted EPS of $1.00 to $1.60. Reuters reported management pointed to a better early start to 2026 in spring and year-round categories, even as the company continued to navigate weak discretionary demand and competition from off-price and online channels.

Kohl’s Corporation (NYSE:KSS) is a U.S. department store retailer that sells apparel, footwear, accessories, beauty, and home products through its stores and digital platform.

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