According to Just Style, Kohl’s reported net income of $151 million for the quarter ended 1 August 2026, driven largely by a $100 million tariff refund that lifted gross margin by 305 basis points to 43.0%.
Financial performance highlights
Net sales declined 0.9% in Q2 compared with the prior-year period. While GAAP net income fell slightly from $153 million to $151 million, it surged sharply over last year’s adjusted net income of $64 million, or $0.56 per diluted share. Operating income totaled $261 million, up from last year’s operational baseline of $161 million—though below the prior-year GAAP figure of $279 million, which included a one-time legal settlement.
Year-to-date results and guidance revision
For the fiscal year to date, Kohl’s reported net sales of $6.3 billion, down 1.2% year-over-year, with comparable sales falling 1.0%. Net income dipped to $137 million from $139 million in the same period last year, while gross margin improved by 162 basis points to 41.5% of net sales. The tariff-related financial boost enabled the retailer to revise its full-year outlook upward and restart its share repurchase program under its existing $3 billion authorization, with up to $100 million allocated for repurchases.
Leadership commentary and strategic posture
CEO Michael Bender acknowledged progress on operational initiatives but stressed that “critical work” remains amid a challenging sales environment. He stated:
“We are confident that the work we are executing is leading us in the right direction. Our second quarter results reflect the ongoing progress against our initiatives, leading to another improvement in our comparable sales trend. While we are encouraged with the momentum we have made thus far, we know there is critical work ahead of us. Importantly, we have made significant strides in building a strong balance sheet through diligent operational focus across the organisation. This provides us a critical foundation as we invest in the business, lead with value for our customers, and return capital to our shareholders.” — Michael Bender, CEO
The company now forecasts full-year comparable sales to range from a 1.5% decrease to flat, and has raised its adjusted diluted earnings per share forecast to $1.80–$2.40. Adjusted operating margin is projected at 3.5%–4.0%.
Source: Just Style
Compiled from international media by the SCI.AI editorial team.
