Kohl’s Corporation’s shares fell more than 8% in premarket trading on Wednesday after the retailer reported second-quarter results that beat earnings expectations but missed revenue forecasts.
The company posted adjusted earnings per share of $1.28 for the quarter, exceeding the analyst consensus of $0.57 by 71 cents. Revenue declined 0.9% year-over-year to $3.32 billion, short of the $3.4 billion estimate. Comparable sales also decreased by 0.9% for the period. Gross margin expanded by 305 basis points to 43.0%, partly due to approximately $100 million in tariff refunds flowing through gross margin during the quarter. Operating income totaled $261 million, down from $279 million in the prior year, while net income was $151 million.
For the first six months of fiscal 2026, net sales declined 1.2% to $6.3 billion, and adjusted EPS stood at $1.18 compared with $0.44 in the prior-year period. Operating cash flow was $478 million, slightly below the $506 million recorded in the same period last year.
Kohl’s raised its full-year 2026 adjusted EPS guidance to a range of $1.80 to $2.40, with the midpoint of $2.10 significantly exceeding the analyst consensus of $1.43. The company also expects full-year net sales and comparable sales to decline between 1.5% and remain flat. Additionally, Kohl’s announced plans to restart its share buyback program with up to $100 million in buybacks planned for 2026.
CEO Michael Bender stated that the company is confident in its strategic progress, noting that the second-quarter results reflect ongoing improvements in comparable sales trends.
