Kohl’s reported second-quarter results on Wednesday that showed profit and net sales both declined from a year ago, even as a one-time tariff refund lifted the company’s full-year earnings outlook.
Net sales fell to $3.32 billion from the prior year period, and same-store sales declined 0.9%. Profit came in at $151 million, or $1.28 per share, down from $153 million, or $1.35 per share, a year earlier.
Kohl’s stock fell 5% to $16.75 in premarket trading on Wednesday.
Of the $150 million in IEEPA tariff refunds the retailer collected during the quarter, roughly $100 million reached gross margin, the Wall Street Journal reported.
With the tariff refund factored in, Kohl’s updated its full-year adjusted earnings per share outlook to $1.80 to $2.40, compared with its previous guidance of $1.00 to $1.60, the company said. The company also tightened its full-year net sales and comparable sales guidance, bringing the range to flat to down 1.5% from a previously projected band of flat to down 2%.
Analysts had projected a same-store sales increase of 0.6% for the quarter, according to the Journal.
Kohl’s also 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 September 23 to shareholders of record as of September 9, the company said.
Capital expenditures for the full year are expected to fall in the range of $350 million to $400 million.
