Kohl's delivered a modest topâ and bottomâline beat in Q3 2025 despite a challenging macro environment and ongoing discretionary income pressure on core customers. Reported revenue of $3.575 billion declined 3.6% year over year but rose 0.8% quarter over quarter, reflecting a stabilizing trend after a strategic reset focused on a more balanced, valueâdriven assortment. Adjusted net income was $11 million and adjusted FFO/EPS stood at $0.10 per share for the quarter, with yearâtoâdate adjusted diluted EPS at $0.54. The company continued to gain traction in digital channels (online growth of 2.4% YoY) and witnessed a meaningful 500 bps improvement in Kohlâs Card customer sales versus Q2, signaling progress in reâengaging core customers. Management highlighted three 2025 prioritiesâcurated assortments, leadership in value and quality via proprietary brands, and a frictionless omnichannel experienceâand indicated sequential improvements in transactions driven by targeted inventory reinvestment and enhanced promotions. However, the firm cautioned that consumer behavior remains highly priceâsensitive, particularly among lowâ to middleâincome and younger consumers, suggesting a slower path to sustainable topâline growth. For 2025, Kohlâs maintained a cautious guidance trajectory: net sales expected to decline 3.5%â4%, comparable sales down 2.5%â3%, and adjusted diluted EPS guidance of $1.25â$1.45, underscoring ongoing cost discipline and cashâflow generation as key drivers of resilience.