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 CorporationQ2 profit surged on tariff refunds, raised FY outlook, and restarted buybacks.
