Kohl’s announced it will not close any stores in 2026, halting a cost-cutting initiative after shutting 27 locations in 2025. The company’s recent earnings report showed a continued sales decline of 3.9% in Q4, but profitability improved sharply due to tighter operational controls. Leadership now states the focus is on optimizing its existing profitable store network rather than further reductions.
Kohl’s leadership has confirmed no further store closures are planned for 2026. This follows the closure of 27 underperforming locations across 15 states last year as part of a broader cost-cutting strategy.
CEO Michael Bender directly addressed the issue on a March earnings call. “I would not anticipate any sort of grand plan of saying we’re taking stores out or adding stores at this point,” he stated.
The company’s focus is now on optimizing its approximately 1,150 existing stores. Over 90% of these locations are currently profitable, according to management.
The Kohl’s earnings report for 2026 revealed a persistent sales decline despite improved profits. Net sales dropped 3.9% to $5 billion in the fourth quarter, with comparable sales down 2.8%.
Full-year net sales reached $14.8 billion, representing a 4% decrease year-over-year. CFO Jill Timm identified the core issue, saying “Our issue continues to be traffic.”
Tighter inventory and expense control, however, led to a Q4 profit of $125 million. Earnings per share climbed to $1.07 from $0.43 in the same period a year earlier.
Bender acknowledged the company is ending 2025 in a stronger operational position. “We are ending 2025 in a stronger position than we started, with important work still ahead of us,” he said.
Analysts remain skeptical about the ongoing sales trend, noting it as one of the weakest in mainstream retail. For 2026, Kohl’s expects sales to range from a 2% decline to being flat.
The retailer is leaning harder into value offerings to attract customers. Bender cautioned that the path forward “is not going to be a straight line.”
