Kohl's Corporation reported that its proprietary brands delivered a 6% comparable sales increase in the first quarter of fiscal 2026, supporting merchandise margin and reinforcing the company's value proposition. Gross margin expanded 4 basis points year over year to 39.9%, driven by higher proprietary brand penetration, though the benefit was largely offset by increased shipping costs tied to higher digital penetration. Key labels such as FLX and Tek Gear showed strength across categories, with Juniors rising 10% led by the So brand, and Kohl's plans to roll out FLX to Kids in all stores by June. The company's shares have surged 114.1% over the past year, and it trades at a forward price-to-earnings ratio of 13, slightly below the industry average of 13.32.
Target Corporation
Walmart Inc.Kohl's CorporationProprietary brands drove 6% comparable sales growth and supported gross margin expansion.