Investing.com -- Kohl's Corporation (NYSE: KSS) shares have declined premarket on Tuesday after it reported fourth-quarter results that beat earnings expectations but missed on revenue, while issuing fiscal 2026 guidance that fell short of analyst projections.The stock has dropped around 10%.

The retailer posted fourth-quarter adjusted earnings per share of $1.07, beating the analyst consensus of $0.85 by $0.22. However, revenue of $5.0 billion came in slightly below the $5.02 billion estimate and declined 3.9% YoY. Comparable sales decreased 2.8% for the quarter.

For fiscal 2026, Kohl's expects adjusted EPS in the range of $1.00 to $1.60, with a midpoint of $1.30 that falls below the analyst consensus of $1.38. The company projects net sales and comparable sales to decline 2% to flat for the year, with adjusted operating margin expected between 2.8% and 3.4%.

"We are ending 2025 in a stronger position than we started, with important work still ahead of us," said CEO Michael J. Bender. "In 2025, we made meaningful progress, despite our Q4 topline coming in softer than our expectations. We were able to manage the business with discipline, deliver improved earnings, and generate meaningful cash flow."

For the full fiscal year 2025, net sales decreased 4.0% to $14.8 billion, with comparable sales down 3.1%. Adjusted diluted EPS was $1.62 compared to $1.50 in the prior year. The company generated $1.4 billion in operating cash flow, up from $648 million in fiscal 2024.

Gross margin as a percentage of net sales improved 25 basis points to 33.1% in the fourth quarter, while SG&A expenses decreased 4.9% to $1.5 billion. Inventory declined 7% YoY to $2.7 billion. The company also declared a quarterly dividend of $0.125 per share.