Kohl’s CEO says the company’s turnaround is still moving forward, even though sales dropped again last quarter and the stock price fell sharply after the results.
Kohl’s posted adjusted earnings of $1.28 per share for the three months ending August 1, beating Wall Street’s estimate of 58 cents. Net sales dropped 0.9% to $3.3 billion, which matched what analysts expected. Comparable sales also fell by about the same amount, showing a small improvement over the previous quarter. Net income was $151 million, down slightly from $153 million a year ago.
Sales have been weak for several years, which led to the company’s turnaround plan under CEO Michael Bender. He became interim CEO in May 2025 and was later made permanent. Bender said the latest results show progress with the company’s strategy, including another small improvement in comparable sales. He also admitted there is still a lot of work to do, but said the company is seeing some positive momentum.
Kohl’s raised its fiscal-year outlook, partly because it increased its outlook for the year, helped by about $150 million in tariff refunds it got in the second quarter. The company now expects net and comparable sales to be flat or down by up to 1.5%, which is better than its earlier forecast of flat to a 2% drop. Kohl’s also raised its adjusted earnings forecast to between $1.80 and $2.40 per share, up from its previous range of $1 to $1.60, and higher than the $1.45 analysts expected. Shares tumbled more than 8% in premarket trading Wednesday, even as broader market futures traded flat.
Kohl’s has also bought back some of its own unsecured debt on the open market, taking advantage of lower bond prices. Over the past six months, it repurchased $113 million of debt at a $15 million discount, adding to $87 million in buybacks last year. The company said it plans to restart share buybacks this year, aiming for up to $100 million under its current authorization. Kohl’s had paused its buyback program in 2020 to save cash during the pandemic.
