Kohl’s was once a retail darling, carving out market share as a department store that catered to the middle-income American consumer with coupons and deals that inspired loyalty.
But over the past five years, Kohl’s stock has lost nearly 70% of its value, falling as the retailer reports weaker sales.
As department stores struggle to stay relevant and middle-income shoppers face budget pressures, Kohl’s is now trying to revive sales by relying on its core value proposition and investing in the store experience to ensure customers get what they need and keep coming back for more. While Wall Street analysts believe the retailer has a lot of work to do, investors have begun to take notice: Kohl’s shares have risen more than 130% in the past year.
“For us, it’s about making sure we choose the route,” CEO Michael Bender told CNBC. “Living in the middle of the retail space like we do, selling products like we do, which is admittedly more selective than others, means you have to choose a route and decide who you’re serving, and that you understand that customer really, really well.”
A Kohl’s store in Sun Valley, California, July 22, 2025.
Alisha Jucevic Bloomberg | Getty Images
The company, which went public in 1992, saw a peak in the early 2000s as department stores found their way around the US Kohl’s is known for its value, proprietary brands, coupons and Kohl’s cash rewards, enjoying success with other department store chains such as. Macy’s and Bloomingdale’s.
At its height, Kohl’s commanded a large market share, with its stock reaching a record high of $82 per share in late 2018 and the company reporting $20.23 billion in revenue for the fiscal year that ended in February 2019.
Kohl’s 5-year chart
But soon after that, the seller started to lose traction. While supermarkets were struggling at the time, Kohl’s also faced some problems that contributed to the decline in revenue.
“As a department store, they’ve been struggling for years,” Chuck Grom, an analyst at Gordon Haskett, told CNBC.
Now, the company is working to stabilize its business, return to growth and win a a customer base Bender says Kohl’s has never completely lost.
Losing its essence
By changing its assortment, limiting the use of coupons and relying on discount sales instead of proprietary products, Kohl’s has “alienated” its core customers, forcing them to go elsewhere, Grom said.
Grom, who has been putting together Kohl’s for years, said the retailer made a mistake when it relied on being a low-cost retailer.
“I think companies need to see who their customers are and not try to be someone they’re not,” he said. “I think a lot of times salespeople want to be what the other person is, and that often backfires on you.”
It’s a move that Bender said sent Kohl’s down the wrong path, leading to years of sluggish sales, declining foot traffic and a “drift” business strategy. The company saw faster profits and changes in its credit card and promotional offerings, which also came as it faced increased competition.
“We’ve made some decisions where we’ve removed categories, for example, patterns and jewelry, and we’ve talked about that in previous earnings calls and other public discussions, those are categories, for example, that can’t be replaced,” Bender said. “We stopped listening to the customer.”
Kohl’s paid the price. Wall Street has lost confidence in the retailer, which has posted quarter after quarter of declining sales. At the same time, competitors like Walmart again TJ Maxx were grabbing the market share vacated by Kohl’s, with online retailers such as Amazon they were growing.
Winning over cost-conscious consumers hit by inflation in recent years has become more difficult as many retailers set higher prices.
“There’s always this concern that can department stores really grow in any meaningful amount of time? There’s a lot of competition around special-price direct-to-consumer products,” said Blake Anderson, an analyst who covers Kohl’s at Jefferies. “The space has really evolved over time, and I think the way Kohl’s has competed is very much tied to price, so winning that customer based on price is becoming more difficult.”
Sonia Lapinsky, managing director of retail at communications firm AlixPartners, said consumer pressure coupled with the demise of the department store model meant the broader economy was not on Kohl’s side.
“They are looking for options that will give them the best bang for their buck,” he said. “They’re looking for value, they’re looking for products, they’re looking for the cheapest price they can get. And there are a lot of compelling propositions from these other retailers.”
Lapinsky added that Kohl’s priorities changed several times after the company’s rise, which in part led to its decline.
“Over the years, we’ve seen a lot of strategic change at Kohl’s, especially whether they’re getting into athletics and athletics, or they’re doubling down on fashion, or now they’re growing private label, and it’s kind of constantly changing what a customer can expect when they walk into a store,” Lapinsky told CNBC. “I think that caused confusion.”
Opening the page
Since Bender took over as CEO in late 2025, he said he has been focused on returning to what has always worked for Kohl’s: proprietary products, value, coupons and a guarantee customers will reliably find the products they want at the right prices.
“In those times, the Kohls were famous for taking care of families and making sure that what they wanted, what was profitable, they would be able to get,” said Bender. “Another recapture of that theme that made Kohl’s great at the time, we think is still relevant today. Customers want convenience.”
In its latest earnings report last month, Kohl’s posted its best comparable sales growth in four years, even as revenue fell. The retailer reported revenue of $3 billion, beating Wall Street estimates, and indicated full-year net sales and comparable sales would be in the 2% range.
At the time, Bender said the quarterback noticed that Kohl was “knocking on the door of growth.” The stock rose 20% following the report.
Grom, who is an analyst at Gordon Haskett, said he believed that if Kohl’s had not returned to its former position, it would have been a “problem” for the retailer.
“I think their strategy makes a lot of sense right now,” Grom said. “I think getting back to where they are will be key to their success.”
Kohl’s, which tends to cater to older shoppers, has also been trying to capture younger shoppers, particularly through its Sephora stores, which are designed to draw Generation Z into the store.
Although Sephora’s stores have struggled a bit in the latest retail quarter — Bender said on a call with analysts that the business “underperformed” and declined in the low single digits — it has historically brought in billions in sales and growing momentum.
“What’s been a very interesting development for them is the strategic use of their square footage and how they’re trying to drive not only sales, but new and younger customers,” said Anderson, a Jefferies analyst. “There’s often a backlash in supermarkets, which were established during a different generation and some of the customers are older, so making sure they keep up with younger shoppers is important.”
Bender said the new generation can “grow with him in the future,” as Kohl’s works to convert that customer to buy more deeply in-store after moving into Sephora.
Despite Kohl’s progress, Wall Street may not yet be convinced that the company is returning to being a household name.
In a June note, TD Cowen analysts wrote that they believed the company was “making the right strategic decisions” but rated the stock on hold due to poor performance in its apparel and footwear businesses.
“Kohl is still a ‘show-me’ case, but the results seem to be better than feared [comparable sales],” analysts wrote after the latest earnings report. “We continue to view simplified promotions, limited inventory and profitable growth in small groups as keys to change. At first glance, the progress in production and consolidation is encouraging, although the pressure on the primary consumer of credit and ‘other income’ remains an important question.”
Lapinsky said that because of its reputation for deals and promotions, Kohl’s must offer a strong value proposition in addition to a core store experience, which sets it apart from other retailers.
“They’ve got to have a compelling product offering, they’ve got to have the right prices, they’ve got to have a product that consumers want to walk into the store and know they’re getting the best bang for their buck – that’s what the consumer really wants, and that’s where they’ve gone to other places,” he said.
Lapinsky added that while Kohl’s is clearly trying to improve its balance sheet and bottom line, the market will have to wait and see how it fares against growing competition as it tries to win back customers.
Still, Bender said that while the signs of recovery are encouraging, it’s only the first step on a long road to a “place” of growth.
“We’re not there yet,” Bender said. “I don’t want anyone to feel like we planted that flag and said, ‘We’re done.’ We’re still in the early innings, to be honest, but we’re going in a much better place and with more clarity about how we want to take the company.”
