Kohl’s Raises Profit Guidance Amid Declining Sales and Relies on Tariff Refunds
Kohl’s reported mixed results for its fiscal second quarter with non-GAAP adjusted diluted EPS rising to $1.28 from $0.56 a year ago, while GAAP earnings declined due to the absence of last year's legal settlement gain. Both net sales and comparable sales fell by 0.9%, marking an 18th consecutive quarter of negative comp growth. The company attributed much of its improved profitability to about $150 million in tariff refunds received during the period, with approximately $100 million directly reducing merchandise costs. Kohl’s raised its adjusted EPS guidance from a range of $1.00-$1.60 to $1.80-$2.40, citing stronger financial flexibility and confidence in strategic investments such as pricing, marketing, inventory management, and store staffing. CFO Jill Timm noted that nearly all the 305 basis points gross margin expansion came from tariff refunds, with only about five basis points stemming from operational improvements.
Tickers: $KSS
Topics: financial performance retail tariffs