Key Facts
• On August 27, Kohl’s raised its FY2026 EPS forecast to $0.50–$0.80 from $0.10–$0.60.
• Stock price surged 27% in morning trading, later stabilizing at an 18% increase.
• Q2 FY2025 SG&A expenses dropped 4.1% YoY; Q1 saw a 5.2% decline.
• Adjusted EPS for Q2 was $0.56, surpassing market expectations of $0.29.
• Same-store sales fell 4.2%, better than the forecasted 5% decline.
• CEO Michael Bender credited profit margin growth, inventory reduction, and cost-cutting for Q2 performance.
• Kohl’s closed an Ohio distribution center and scaled back jewelry and women’s apparel in 2025.
• Analysts noted sales exceeded expectations but highlighted challenges with heavy discounting and brand building.
Summary
Kohl’s revised its FY2026 earnings forecast upward, citing successful cost-cutting and new product strategies. The retailer’s Q2 FY2025 results exceeded expectations, with adjusted EPS at $0.56 and same-store sales declining less than anticipated. Despite these gains, analysts pointed out ongoing struggles with discounting and brand development. The company has also taken steps to streamline operations, including closing a distribution center and reducing certain product lines. Stock prices initially surged 27% but later settled at an 18% increase.
