Kohl's Reports Q2 Earnings with Sequential Sales Improvement
Kohl’s Corporation reported second-quarter results for fiscal year 2027, showing a slight decline in net sales to $3.3 billion, down 0.9% due to lower average transaction value and fewer transactions. However, the company noted sequential improvement in comparable store sales from the previous quarter. Gross margin improved significantly by 305 basis points to 43%, largely driven by $100 million in tariff refunds applied to merchandise costs. Kohl’s also announced a full-year adjusted diluted EPS guidance of $1.80–$2.40, including an estimated benefit of $0.65 from the tariff refunds. The company ended the quarter with inventory levels at $2.9 billion, down 3% year-over-year due to reduced choice counts and increased depth in certain categories. Digital sales rose by 2.8%, while Kohl’s Card Sales grew for the first time in several quarters after reengagement efforts. Marketplace sales surged 88% as product selection doubled during the quarter, but Sephora at Kohl's saw a decline of 4%. The company also repurchased $63 million in long-term debt and plans to restart its share buyback program with up to $100 million allocated for stock purchases.
Tickers: $KSS
Topics: financial_performance margin retail sales