Kohl’s Corporation reported first-quarter 2026 revenue of $3 billion as the retailer advanced its turnaround strategy through artificial intelligence, digital commerce enhancements, customer engagement initiatives, and merchandise optimization.
While net sales declined 1.7 percent year-over-year, the company delivered its strongest comparable sales performance in more than four years, signaling early progress under CEO Michael Bender.
Comparable sales declined 1.1 percent during the quarter, outperforming expectations and reflecting improved customer response to refreshed product assortments, expanded inventory availability, and stronger execution across key retail categories. Kohl’s reported a net loss of $14 million, or $0.13 per share, significantly better than analyst expectations for a loss of $0.21 per share.
A key strength for Kohl’s remains its large customer ecosystem. The company serves more than 60 million customers across the United States, supported by over 30 million registered loyalty members. These loyalty members provide valuable consumer insights, support repeat purchases, and help Kohl’s strengthen customer retention efforts across both physical and digital channels.
Steven Dee is the chief technology officer of Kohl’s, responsible for overseeing all technology and information platforms supporting Kohl’s omnichannel business, ultimately supporting the broader business strategies.
Arianne Parisi is the chief digital officer, responsible for driving Kohl’s digital business through Kohls.com and the Kohl’s App, as well as supporting the broader business focus on enhancing the omnichannel customer experience.
Digital engagement continues to play an increasingly important role in Kohl’s growth strategy. The retailer reported more than 20 million active mobile app users, highlighting the importance of its mobile platform for promotions, personalized offers, in-store barcode scanning, digital payments, and omnichannel shopping experiences. Digital and e-commerce channels accounted for 26 percent of total company sales during the quarter, demonstrating continued consumer adoption of online shopping services.
To strengthen its digital capabilities, Kohl’s launched an AI-powered Gift Finder tool in May using Google Gemini technology. The new AI assistant is designed to improve product discovery, streamline shopping journeys, reduce browsing friction, and increase conversion rates by helping customers quickly identify relevant products based on their preferences and gifting needs. The initiative represents Kohl’s latest effort to integrate artificial intelligence into the customer experience and drive higher engagement across its online platform.
The company is also redesigning its digital storefront to deliver more curated shopping experiences. Kohl’s is moving away from traditional text-heavy product displays and introducing richer visual content, product spotlights, and brand-focused navigation tools that simplify product discovery and improve customer engagement.
Supporting its omnichannel strategy, Kohl’s enhanced backend inventory management and supply chain systems to improve real-time product availability across stores and digital channels. These upgrades are intended to provide more accurate inventory visibility, faster local pickup services, and improved fulfillment reliability for online shoppers.
Kohl’s continues to benefit from its extensive physical retail network, with approximately 80 percent of Americans living within 15 miles of a Kohl’s store. This geographic reach provides a competitive advantage by supporting convenient pickup options, returns processing, and local fulfillment capabilities that complement its digital operations.
From a profitability perspective, gross margin improved slightly by 4 basis points to 39.9 percent. The expansion was driven primarily by stronger performance from proprietary and private-label brands, which grew 6 percent during the quarter and contributed higher-margin sales. These gains helped offset margin pressure from increased shipping and fulfillment costs associated with digital sales growth. As Kohl’s advances its transformation strategy, the retailer is increasingly combining AI-driven shopping tools, mobile engagement, loyalty programs, digital merchandising, and supply chain modernization to strengthen customer experiences and support long-term growth in an evolving retail market.
RAJANI BABURAJAN
