Kohl's delivered a modest top‑ and bottom‑line 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, value‑driven assortment. Adjusted net income was $11 million and adjusted FFO/EPS stood at $0.10 per share for the quarter, with year‑to‑date 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 Kohl’s Card customer sales versus Q2, signaling progress in re‑engaging core customers. Management highlighted three 2025 priorities—curated assortments, leadership in value and quality via proprietary brands, and a frictionless omnichannel experience—and indicated sequential improvements in transactions driven by targeted inventory reinvestment and enhanced promotions. However, the firm cautioned that consumer behavior remains highly price‑sensitive, particularly among low‑ to middle‑income and younger consumers, suggesting a slower path to sustainable top‑line growth. For 2025, Kohl’s maintained a cautious guidance trajectory: net sales expected to decline 3.5%–4%, comparable sales down 2.5%–3%, and adjusted diluted EPS guidance of $1.25–$1.45, underscoring ongoing cost discipline and cash‑flow generation as key drivers of resilience.