THE WHAT? Kohl’s has raised its full-year 2026 financial outlook after reporting improved margins in the second quarter, despite net and comparable sales both declining 0.9 percent year on year.

THE DETAILS Kohl’s reported Q2 net sales of US$3.3 billion, down 0.9 percent, while gross margin increased 305 basis points to 43 percent and net income reached US$151 million, or US$1.28 per diluted share. The retailer received approximately US$150 million in tariff refunds during the quarter, around US$100 million of which benefited gross margin, and now expects full-year net and comparable sales to range from a 1.5 percent decline to flat, adjusted EPS of US$1.80–US$2.40 and an adjusted operating margin of 3.5–4 percent. Kohl’s is also restarting share repurchases of up to US$100 million in 2026.

THE WHY? The improved outlook signals growing confidence in Kohl’s turnaround strategy and balance-sheet position, although continued sales declines underline the work still required to restore sustainable topline growth.

Source: Kohl’s

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