Kohl’s Corporation (NYSE:KSS) saw its stock surge roughly 15% in premarket trading Wednesday after reporting second-quarter results that significantly exceeded analyst expectations, despite ongoing challenges in a tough consumer environment.
The retailer posted adjusted earnings per share of $0.56 for the quarter ending August 2, 2025, surpassing the consensus estimate of $0.30 by 26 cents. Revenue fell 5.1% year-over-year to $3.35 billion, slightly below analyst forecasts of $3.37 billion. Nevertheless, Kohl’s cost-cutting initiatives and margin improvements helped drive the earnings outperformance. Comparable store sales declined 4.2% versus the same period last year.
“Kohl’s second quarter performance is a testament to the progress we are making against our 2025 initiatives,” said Michael Bender, Kohl’s Interim Chief Executive Officer. “We were able to expand our gross margins, reduce our inventory, and lower our expenses, leading to solid second quarter earnings.”
The company’s stock reaction reflected investor optimism, further boosted by an improved full-year outlook. Gross margin rose 28 basis points to 39.9%, and inventory was reduced by 5% year-over-year.
Kohl’s updated its guidance for the full year 2025, now forecasting adjusted earnings per share between $0.50 and $0.80, with a midpoint of $0.65 exceeding prior estimates. The retailer expects net sales to decline 5% to 6% for the year, with comparable store sales falling between 4% and 5%.
Additionally, Kohl’s announced a quarterly cash dividend of $0.125 per share, payable on September 24 to shareholders of record as of September 10.
Kohl’s Corporation stock price
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