Is KSS (Kohl's Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, KSS is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in KSS.

Kohl's Corporation is a major American retailer operating over 1,100 department stores and a robust e-commerce platform. The company specializes in family -oriented products, offering a wide mix of national brands like Nike and Levi's alongside private labels such as Sonoma Goods for Life and Croft & Barrow. Their merchandise spans apparel, footwear, home goods, and beauty products, making them a staple in the mid -tier retail sector. For Muslim investors, Kohl's presents a split picture: the business activity itself is permissible, as selling clothing and home goods is Halal. However, the stock is currently flagged as 'Doubt ful' because it fails the financial health screening mandated by AAOIFI standards. While they pass the checks for interest income and cash holdings, their debt levels are significantly higher than what is typically allowed for Shariah-compliant equities. The primary red flag is the Debt-to-Market Cap ratio, which is currently at 371.9%, vastly exceeding the 33% threshold. This indicates the company is highly leveraged relative to its equity value, meaning a significant portion of its operations is fueled by interest-bearing loans. Conversely, their interest income is negligible at 0.00%, showing they are not actively profiting from impermissible lending, but the debt burden remains the critical barrier. Investors interested in the retail sector should monitor Kohl's market capitalization and debt reduction efforts closely. Unless the stock price rises significantly to balance the ratio , or the company aggressively pays down its liabilities, it remains outside the safe zone for strict Shariah compliance. Kohl's Corporation operates in the Consumer Cyclical sector under the Department Stores industry and is headquartered in Menomonee Falls, WI, US. The company is led by CEO Michael J. Bender and employs approximately 87,000 people.

KSS was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. KSS passed 3 of these 4 screens.

KSS was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.