Kohl’s reported a 0.9% year-over-year decline in quarterly revenue to $3.32 billion for the second quarter, missing Wall Street’s estimate of a 0.1% decline to $3.35 billion, as cautious consumer spending weighed on discretionary purchases. The company’s shares fell about 5% in premarket trading following the results.
The department store operator attributed the shortfall to weaker demand for apparel and home goods, categories that have softened as middle- and lower-income households prioritize essential spending amid persistent inflation. The trend contrasts with more resilient demand among higher-income consumers, Kohl’s noted.
Kohl’s received $150 million in tariff refunds during the quarter, providing partial support to its financial performance. The company also announced plans to resume a $100 million share repurchase program in 2024, signaling confidence in its turnaround strategy despite the near-term sales headwinds.
For fiscal 2026, Kohl’s raised its adjusted earnings guidance to a range of $1.80 to $2.40 per share, up from its prior forecast of $1.00 to $1.60 per share. The updated outlook reflects expectations of improved cost management and operational efficiencies, though it remains contingent on a stabilization in discretionary spending.
The results follow broader retail trends, including a 0.1% decline in U.S. retail sales in July—the first drop in nine months—amid deteriorating consumer sentiment in August. Analysts at LSEG provided the revenue estimates used for comparison.
