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.
Kohl's CorporationKohl's raised full-year guidance and resumed share buybacks, with improved margins and EPS outlook.
