Kohl’s is moving to revive its struggling in-store Sephora business after sales in the category fell 4% year over year in the second quarter.
In an Aug. 26 earnings call, Kohl’s CEO Michael Bender attributed the decline to distribution shifts among major beauty brands. “A handful of major brands have experienced expanded distribution,” he said, adding that newer brands in Kohl’s pipeline have not yet grown large enough to offset softness from more established names, TheStreet reported.
To address the decline, Kohl’s plans to introduce new brands across fragrance, haircare and skincare. Fragrance additions will include Khloé Kardashian and Givenchy, along with expanded offerings from Kaali and Jo Malone London. The company will install new fragrance towers in 250 stores in November. In haircare, Kohl’s will launch Emi Jay, Crown Affair, i.N.O. and Fromlabs. New skincare brands will include Evereden, Topicals and Ultra Violette, TheStreet reported.
The retailer also plans to add holiday outposts in 130 Sephora stores and expand its travel-and-trial assortment to attract new customers.
Despite the initiatives, Kohl’s projects that its net and comparable sales will decline by as much as 1.5% or remain flat for the full year 2026.
“We’re operating in really uncertain times, and we have a lot of pressure on our customer from a macro perspective,” Kohl’s Chief Financial Officer Jill Timm said on the same call, TheStreet reported.
As previously reported, Kohl’s is currently dealing with a downturn in its Sephora partnership after years in which the shops served as a growth engine for the struggling chain.
According to Fitch Ratings’ research, Sephora at Kohl’s accounts for roughly 10% of the retailer’s total sales. While the partnership previously contributed to growth, it now contributes to the chain’s declining comparable sales.
Generative AI was used to draft this story, based on data provided by TheStreet. It was reviewed and edited by Advance Local.
