Kohl's operates roughly 1,150 off-mall, mid-tier department stores across the U.S., plus a website, selling moderately priced apparel, footwear, accessories, beauty, and home products to low- and middle-income households. Kohl's sells a mix of national brands (Nike, Levi's) and exclusive proprietary brands (Sonoma, FLX, Tek Gear), with proprietary brands carrying higher gross margins but lower price points. Kohl's also hosts Sephora shop-in-shops in over 1,100 stores, generating nearly $2B in annual beauty sales and attracting a younger customer. The business model centers on a promotional engine built around coupons and Kohl's Cash rewards, which are particularly important to the core credit card customer. Kohl's also earns revenue from a co-branded credit card (issued by Capital One), generating interest and fee income that tends to run at higher margins than merchandise sales. Over 90% of stores are profitable on a four-wall basis, and stores double as fulfillment nodes for ship-from-store and buy-online-pick-up-in-store orders. Kohl's has struggled with several years of comparable sales declines after pulling back on proprietary brands, restricting coupon eligibility, and cutting categories like jewelry and petites to make room for Sephora. Management is now working to reverse these decisions by rebuilding proprietary brand penetration, restoring excluded categories, and simplifying its promotional strategy. For FY26, management is guiding for comparable sales of -2% to flat.