Kohl’s raises outlook on slowing sales declines, tariff refunds
Kohl’s Corp. reported declining profit and sales for its second quarter, but raised its full-year outlook amid tariff refunds and signs that its turnaround was taking hold.
The department store retailer reported $150 million in tariff refunds received during the quarter, of which approximately $100 million flowed through gross margin. Another $40 million in refunds are expected to be received. The company also said it would resume its roughly $100 million share repurchase program this year.
“We are confident that the work we are executing is leading us in the right direction,” stated Michael Bender, who was named permanent CEO in November after serving as interim chief. “Our second quarter results reflect the ongoing progress against our initiatives, leading to another improvement in our comparable sales trend. While we are encouraged with the momentum we have made thus far, we know there is critical work ahead of us."
On the same day it reported second-quarter results, Kohl's also said that its chief marketing officer, Christie Raymond, would be leaving the company in September. She has served as marketing chief since 2022.
Second Quarter
Kohl's net income totaled $151 million, or $1.28 per diluted share, for the quarter ended Aug. 1. This compares to net income of $153 million, or $1.35 per diluted share and adjusted net income of $64 million, or $0.56 per adjusted diluted share, in the prior year.
Net sales decreased 0.9% to $3.3 billion. Comparable sales also fell 0.9% compared to a 4.2% drop in the year-ago period. It was the chain's 18th consecutive quarter of comp declines.
For the full year 2026, Kohl’s now expects net and comparable sales to be down 1.5% to flat, with adjusted operating margin in the range of 3.5% to 4% and adjusted diluted earnings per share in the range of $1.80 to $2.40. The company’s earlier projection called for net and comparable sales to be 2% to flat, with adjusted operating margin in the range of 2.8 to 3.4% and adjusted diluted earnings per share in the range of $1 to $1.60.
Kohl's said it plans to restart share repurchases of up to $100 million in 2026 under its existing $3 billion authorization. The company's board declared a quarterly dividend of $0.125 per share on August 18, payable Sept. 23 to shareholders of record as of Sept. 9, the company said.
Kohl's has more than 1,100 stores in 49 states.
