Kohl’s Corp. shares tumbled 6.7% in pre-market trading on Wednesday after the department store operator reported second-quarter fiscal 2026 results that fell short of expectations and maintained a cautious outlook.
The Menomonee Falls, Wisconsin-based retailer posted net sales of $4.1 billion, a 0.9% decline from the same period last year, while comparable sales also decreased by 0.9%. Diluted earnings per share came in at $1.28, missing analyst estimates. Despite the weak performance, management raised its full-year 2026 financial guidance, though details of the revision were not disclosed.
The company also announced the restart of its share repurchase program, signaling confidence in its balance sheet and long-term strategy. Kohl’s stock has traded near its 52-week low of $11.38, significantly below its 52-week high of $25.22.
Options activity reflected bearish sentiment, with put contracts outnumbering calls by roughly four-to-one in the prior session. Heavy trading was concentrated in near-term strikes well below the prevailing share price, further underscoring investor caution.
Analysts at JPMorgan maintained an Underweight rating on Kohl’s, lifting the price target to $17 from $15. Morgan Stanley and Bank of America both retained negative ratings on the stock. The broader market, represented by the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite, showed little movement on the day.
Kohl’s also announced leadership changes, including the creation of a new Chief Customer Officer role and the departure of its Chief Marketing Officer. The company’s core customer base, consisting of middle- and lower-income shoppers, continues to face pressure from a challenging macroeconomic environment, limiting discretionary spending and reinforcing a focus on value-oriented retail.
