Kohl’s Corp (NYSE: KSS) has lifted its full-year profit guidance after reporting stronger-than-expected second-quarter earnings, signaling that its turnaround efforts are beginning to pay off.
The retailer posted adjusted earnings per share (EPS) of $0.56, well ahead of analyst expectations of around $0.30.
While net sales dipped, comparable-store sales fell 4.2%, a smaller decline than the projected 5%, easing investor concerns about consumer demand.
Following the upbeat results, Kohl’s raised its 2025 EPS forecast to $0.50–$0.80, compared to its earlier range of $0.10–$0.60.
The company also narrowed its sales outlook and lifted operating-margin targets, citing stronger cost controls and more efficient inventory management.
Management highlighted steps including the closure of an Ohio fulfillment center, streamlining of in-store jewelry operations, and a renewed focus on fresher product assortments as key drivers of the margin improvements.
The update sparked a sharp market reaction, with Kohl’s shares climbing more than 15% in pre-market trading as investors welcomed signs that the retailer’s restructuring strategy is gaining traction.
Kohl’s, which has faced years of sales pressure and shifting consumer trends, appears to be regaining investor confidence with its improved profitability outlook.
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