Kohl's Corporation

Kohl's reported second-quarter net income of $151 million, or $1.28 per diluted share, for the quarter ended 1 August 2026, a significant surge over last year's adjusted net income of $64 million, despite a slight sales decline. The company attributed approximately $100 million of tariff refunds to gross margin gains, which rose 305 basis points to 43.0%. Operating income came in at $261 million, down from the GAAP figure of $279 million a year earlier but up from the operational baseline of $161 million. For the year to date, net sales fell 1.2% to $6.3 billion, with comparable sales down 1.0%. The financial boost allowed Kohl's to raise its fiscal 2026 outlook and restart its share repurchase program, with up to $100 million of shares to be bought back under its existing $3 billion authorization. The retailer now expects full-year comparable sales to range from a 1.5% decrease to flat and raised its adjusted diluted EPS forecast to between $1.80 and $2.40.

Kohl's has appointed Ryan M. Waymire as its new Chief Merchandising Officer, effective September 28, reporting to CEO Michael J. Bender. Waymire brings 25 years of retail experience from Walmart, Amazon, and Target, most recently serving as SVP of Fashion at Walmart U.S. In his new role, he will oversee all merchandising functions, including buying, omnichannel merchandising, product design, and sourcing. He replaces Nick Jones, who has held the position since 2023 and is leaving the company. CEO Bender praised Waymire's track record in transforming merchandise strategies and integrating collaborations and social media influencers into product stories.

Kohl's reported second-quarter 2026 results with comparable sales down 0.9%, a sequential improvement, and raised its full-year guidance, citing tariff refunds and continued progress on key initiatives. Net income was $151 million, or $1.28 per diluted share, and the company resumed its share repurchase program for the first time since 2022, planning to buy back approximately $100 million in stock in 2026. Gross margin improved 305 basis points, benefiting from about $150 million in tariff refunds, of which roughly $100 million hit cost of merchandise sold. The company now expects full-year comp sales in the range of a 1.5% decrease to flat, adjusted operating margin of 3.5% to 4%, and adjusted EPS of $1.80 to $2.40, including a $0.65 tariff refund benefit. Management highlighted strength in Home, Kids, and Juniors, while Sephora at Kohl's sales declined 4% due to expanded distribution of key brands.

Major retailers and consumer goods companies are directing tariff refund payments toward price cuts as inflation-fatigued shoppers pull back on spending, according to The Wall Street Journal. The refunds trace back to a Supreme Court decision earlier this year holding that the International Emergency Economic Powers Act did not give President Donald Trump authority to impose those tariffs, an outcome that set off more than $160 billion in payments back to importers. Walmart said it rolled back prices on 11,000 items, including ground beef, using roughly $2.9 billion in tariff refunds, with CFO John David Rainey noting shoppers began making visible spending trade-offs in June as gas prices climbed above $4 a gallon. E.l.f. Beauty, which received about $50 million in refunded tariff payments, permanently lowered prices across around 10% of its catalog after a test that dropped the Halo Glow Skin Tint's price by $4 and drove unit sales up close to 40%; net sales for the quarter ended June 30 climbed 36% to $479.4 million. Tractor Supply channeled its refunds into shielding customers from freight and fuel cost increases, lowering prices on products including pine shavings and premium pet food, while its gross margin edged up to 37.1% for the quarter ending June 27 from 36.9% a year earlier. Not every retailer is passing refunds to shoppers: Lowe's CEO Marvin Ellison told CNBC the company received roughly $80 million in refunds and chose to direct them toward shareholder returns, and Kohl's CEO Michael Bender said the company put $100 million of its refunds into its gross margin and plans to invest the remainder in deeper inventory. Burlington Stores said it plans to reinvest all $55 million of its tariff refunds into lower prices over the second half of its fiscal year.

Kohl's Corporation raised its profit outlook after reporting a mixed fiscal second quarter, with adjusted diluted EPS rising to $1.28 from $0.56 a year earlier, while comparable sales fell 0.9% for an 18th consecutive quarter. The company received approximately $150 million in tariff refunds during the quarter, of which about $100 million reduced merchandise costs and benefited gross profit. Gross margin expanded 305 basis points to 43.0%, but CFO Jill Timm said that without the tariff benefit, the increase would have been only about five basis points, meaning roughly 98% of the expansion came from the refunds. Kohl's raised its full-year adjusted EPS forecast to $1.80-$2.40 from $1.00-$1.60, with approximately $0.65 of the $0.80 midpoint increase attributed to the refunds. The company also restarted its share-repurchase program, citing a stronger balance sheet and confidence in its direction, while CEO Michael Bender noted that low- and middle-income customers remain under financial pressure.

Shares of Abercrombie & Fitch Co. surged 35.7% after the company reported second-quarter fiscal 2026 earnings of $2.42 per share, beating the Zacks Consensus Estimate of $1.95 per share. Kohl's Corporation's shares rose 1.5% after it reported second-quarter fiscal 2026 earnings of $1.28 per share, surpassing the Zacks Consensus Estimate of $0.55 per share. Shares of The J. M. Smucker Company jumped 4.3% after the company reported first-quarter fiscal 2027 earnings of $3.24 per share, outpacing the Zacks Consensus Estimate of $2.21 per share. Williams-Sonoma, Inc.'s shares gained 1.2% after the company reported second-quarter fiscal 2026 earnings of $2.1 per share, beating the Zacks Consensus Estimate of $2.05 per share.

Abercrombie & Fitch soared 37% after trouncing fiscal second-quarter estimates and raising its full-year outlook, with adjusted earnings of $2.42 per share and revenue up 5% to $1.27 billion, helped by tariff refunds and stronger growth at its Abercrombie unit. Intuit fell 4% after offering disappointing fiscal year 2027 guidance of $23.3 billion to $23.5 billion in revenue, below the $23.7 billion analyst estimate, though its fiscal fourth-quarter earnings and revenue beat expectations. Meta Platforms jumped 3% after reaching a settlement with state attorneys general in a case alleging it made its apps addictive to teenagers. Zoom Communications dropped 7% after its third-quarter forecast of $1.46 to $1.48 earnings per share missed the $1.50 estimate. Kohl's rose 2% after raising its full-year outlook, partly due to $150 million in tariff refunds, and announced share buybacks of up to $100 million in 2026. J.M. Smucker climbed 3% on fiscal first-quarter revenue of $2.22 billion, topping the $2.13 billion consensus. SolarEdge Technologies jumped nearly 8% after a UBS upgrade to buy, citing an FCC policy expected to boost market share and pricing power. Semtech rose over 8% on second-quarter earnings beat, with adjusted EPS of 71 cents versus 61 cents expected. Boston Scientific fell 5% after reporting a cybersecurity incident causing product disruptions. SAP declined 3% after a UBS downgrade to neutral, citing slow delivery of agentic AI.

Four major retailers reported Wednesday morning, all beating expectations and raising guidance, but a significant portion of those profits came from a Supreme Court decision rather than stronger consumer spending. The court struck down IEEPA tariffs on February 20th, triggering roughly $166 billion in collections from some 330,000 importers, with about $100 billion refunded as of July 31st. Walmart disclosed the largest refund, while Lowe's received $80 million, about one-ninth of Home Depot's amount. Abercrombie & Fitch reported record second-quarter net sales of $1.27 billion, up 5%, and earnings of $4.17 per diluted share, but the IEEPA refund contributed $1.75 per share, making underlying EPS about $2.42. Williams-Sonoma stood out with comparable brand revenue up 6.2%, accelerating from 4.8% last quarter, and raised its full-year outlook. Kohl's beat with EPS of $1.28 against roughly $0.55 expected, and Bath & Body Works beat despite a 2.3% sales decline. The macro data shows consumers feel better about today but worse about tomorrow, with core PCE rising 0.2% month over month. Investors should normalize for tariff refunds, watch how retailers deploy the windfall, and focus on companies that didn't need the help, like Williams-Sonoma and Sam's Club.

Kohl's reported second-quarter earnings of $1.28 per share, beating the Zacks Consensus Estimate of $0.55 per share and surpassing the year-ago earnings of $0.56 per share. Revenue for the quarter ended July 2026 came in at $3.52 billion, slightly missing the consensus estimate by 0.02% and down from $3.55 billion a year earlier. The company has beaten EPS estimates in each of the last four quarters. Kohl's shares have fallen about 13.4% since the start of the year, while the S&P 500 has gained 12.2%. The stock currently holds a Zacks Rank #2 (Buy), and the consensus EPS estimate for the current fiscal year stands at $1.38 on revenues of $15.38 billion.

Kohl's announced several developments in August 2026, including expanding Martha Stewart kitchen electrics from Amazon into Kohl's stores and Kohls.com, launching a DoorDash partnership for rapid delivery from more than 1,100 locations, and declaring a regular quarterly dividend of US$0.125 per share payable on September 23, 2026. These moves aim to refresh the merchandise mix and widen distribution ahead of the upcoming second quarter earnings release. The DoorDash partnership ties Kohl's more directly into rapid delivery for apparel and home goods, potentially affecting digital conversion and customer reach metrics. Kohl's narrative projects $15.5 billion revenue and $202.0 million earnings by 2029, assuming fairly flat yearly revenue growth and a $70.0 million earnings decrease from $272.0 million today. Some analysts are more cautious, assuming revenue drifts to about US$14.8 billion and earnings to roughly US$204 million.

DoorDash announced new back to school delivery partnerships with Barnes & Noble, Carter's, Kohl's and Gap/Gap Factory, marking its largest push into nationwide retail, books and department stores. The partnerships extend DoorDash's delivery coverage into books, kids' apparel and broader department store categories across the US ahead of the back to school shopping period. These additions expand DoorDash's non-food offering and give users more ways to consolidate everyday and seasonal spending within the platform.

Kohl's declared a quarterly dividend of $0.125 per share, in line with the previous payout. The dividend is payable September 23 to shareholders of record on September 9, with the ex-dividend date also September 9. Based on the current share price, the forward yield is 2.67%.

Kohl's has launched a new back-to-school campaign featuring an AI-powered shopping assistant, alongside community support initiatives benefiting the Boys & Girls Clubs of America. The AI tool aims to help shoppers sort through choices, tailor picks to budgets, and organize lists, while the campaign emphasizes thousands of items priced under $25 to attract value-oriented customers. The company is pairing the tech push with grants to the Boys & Girls Clubs, seeking to blend convenience and charitable giving to influence brand perception and repeat visits. Investors will watch whether the assistant drives higher basket sizes, repeat visits, and improved same-store sales during this key shopping window.

Kohl's posted its best comparable sales in over four years, Chewy's near-zero debt and record 8% EBITDA margin sparked acquisition talk on Reddit, and Wayfair surged 29% in a month toward analyst fair value above $93. Kohl's comparable sales fell 1.1% in the fiscal first quarter, revenue reached $3.17 billion, inventory dropped 8% year over year, and revolving credit borrowings fell to zero from $545 million. Chewy's first-quarter revenue rose 8% to $3.36 billion, with Autoship at 84% of net sales and 21.5 million active customers, while a $200 million buyback was completed in the quarter. Wayfair's 5.2% adjusted EBITDA margin was its strongest first quarter in five years, but a stockholders' deficit of $2.84 billion and $2.9 billion in long-term debt keep the risk profile elevated.

Kohl's juniors business grew 10% in the first quarter of fiscal 2026, led by strength from its proprietary So. brand. The performance contributed to flat to slightly positive comparable sales across the women's, kids', home and accessories businesses, making juniors one of the clearest areas of progress within the company's merchandising initiatives. Company-wide comparable sales declined 1.1% in the quarter, indicating that the strength in juniors stood out against an overall business that remains under pressure. Kohl's plans to expand the So. brand into additional dress and casual categories through its office edit collection.

Kohl's Corporation reported that its proprietary brands delivered a 6% comparable sales increase in the first quarter of fiscal 2026, supporting merchandise margin and reinforcing the company's value proposition. Gross margin expanded 4 basis points year over year to 39.9%, driven by higher proprietary brand penetration, though the benefit was largely offset by increased shipping costs tied to higher digital penetration. Key labels such as FLX and Tek Gear showed strength across categories, with Juniors rising 10% led by the So brand, and Kohl's plans to roll out FLX to Kids in all stores by June. The company's shares have surged 114.1% over the past year, and it trades at a forward price-to-earnings ratio of 13, slightly below the industry average of 13.32.