Kohl’s Corporation KSS is working to make its shopping experience more connected across stores and digital channels, with online performance standing out as one of the clearer signs of progress in the first quarter of fiscal 2026. The company’s digital sales rose 4% in the quarter, supported by higher digital traffic and ongoing investments aimed at modernizing the online experience.
A key focus is making the digital platform easier to navigate and more relevant for shoppers. Kohl’s is enhancing product discovery through more curated digital experiences, improved storytelling, product spotlights and brand-level filters. It is also working to reduce friction at important points in the shopping journey, including clearer delivery information and easier returns.
The digital gains are tied closely to the broader omnichannel push. Kohl’s is trying to improve Trip Assurance by strengthening in-stocks for key items and giving customers more flexibility in how they receive products, whether through stores, home delivery or buy online, pick up in store. The company is also planning apparel depth up in high single digits while reducing choice counts by high single digits to improve inventory composition.
In May, Kohl’s launched a new AI-powered gift finder on its website using Google Gemini. The tool is designed to improve product discovery and customer engagement, with room to support conversion and reduce shopping friction over time.
Kohl’s is also looking to expand its Digital Marketplace by more than doubling marketplace items this year. Taken together, the 4% digital sales increase suggests that Kohl’s omnichannel investments are gaining traction, though sustained execution will be key to building on that momentum.
TGT and TJX Offer Context for Kohl's Digital Progress
Target Corporation TGT showed strong digital momentum, with first-quarter fiscal 2026 comparable digital sales up 8.9%. Target’s digital growth was supported by more than 27% growth in same-day delivery, fueled by Target Circle 360. TGT also said that first-party digital sales grew nearly 9%, while Target+ marketplace GMV rose nearly 60%, showing broad online and fulfillment strength.
The TJX Companies TJX remains more store-led, but TJX also operates e-commerce sites under TJ Maxx, Marshalls, Sierra and TK Maxx in Europe. In first-quarter fiscal 2027, The TJX Companies posted 6% consolidated comparable sales growth, with all divisions delivering higher customer transactions. TJX’s Marmaxx division, which includes TJ Maxx, Marshalls, Sierra stores and their e-commerce sites, delivered 6% comparable sales growth.
KSS Stock Price Performance, Valuation & Estimates
Shares of Kohl’s have surged 76% over the past year compared with the industry’s growth of 67.1%.
KSS Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, KSS trades at a forward price-to-earnings ratio of 10.73, lower than the industry’s average of 13.19.
KSS’ Valuation Compared to Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KSS’ current fiscal-year earnings per share implies a year-over-year decline of 19.1%, while the consensus mark for the next fiscal year’s EPS suggests growth of 7.6%.
Kohl’s currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).