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.
Kohl's CorporationRaised profit outlook and restarted share repurchases, though most gain from tariff refunds.
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