Kohl's posts drop in Q2 sales, lifts FY profit guidance

(Sharecast News) - US department store chain Kohl's posted a drop in second-quarter sales on Wednesday as it conceded there was "critical work" to be done going forward, but lifted its full-year profit guidance as it included the benefit of tariff refunds.

Second-quarter sales fell 0.9% to $3.3bn, with comparables sales also down 0.9%. Net income declined to $151m, or $1.28 per diluted share, versus $153m and $1.35m in the same period a year earlier.

The company lifted its full-year guidance to include the benefit of tariff refunds of around $150m received in the second quarter. It now expects net sales and comparable sales to be flat to 1.5% lower, up from previous guidance of flat to 2% lower.

Meanwhile, adjusted diluted earnings per share are now seen at between $1.80 and $2.40, up from previous guidance of $1.00 to $1.60. Kohl's also said it was restarting share repurchases of up to $100m in 2026.

Chief executive Michael Bender said: "We are confident that the work we are executing is leading us in the right direction. 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.

"Importantly, we have made significant strides in building a strong balance sheet through diligent operational focus across the organisation. This provides us a critical foundation as we invest in the business, lead with value for our customers, and return capital to our shareholders."

At 1335 BST, Kohl's shares were down 7.5% in pre-market trade at $16.36.