Today, Kohl’s Corporation announced its second quarter 2025 results, with net sales of $3.3 billion, a decline of 5.1% compared to the previous year, and comparable sales down 4.2%.
Despite the loss, Kohl’s profits beat estimates, with an adjusted earnings per share of 56 cents, much higher than the expected 29 cents, according to data from LSEG.
Following the earnings report, Kohl’s shares jumped more than 20% in premarket trading as the company increased its annual profit forecast for the rest of 2025 to an earnings per share of 50 cents to 80 cents, up from its previous wide range of 10 cents to 60 cents.
Michael Bender, Kohl’s Interim CEO told investors, “Kohl’s second quarter performance is a testament to the progress we are making against our 2025 initiatives. This resulted in sales performance that came in ahead of our expectations. While it is clear that these initiatives are beginning to resonate with our customers, our team remains focused on delivering progressive improvement throughout the remainder of the year against a challenging economic backdrop.”
“In addition to our top line progress, we managed the business with great discipline in the quarter. We were able to expand our gross margins, reduce our inventory, and lower our expenses, leading to solid second quarter earnings. I continue to be impressed with our entire team at Kohl’s and am thankful for all their hard work,” Bender concluded.
During its turnaround efforts, the company is also increasing the number of coupons for branded products to retain its lower and middle-income customers, as tariffs and inflation tighten budgets and affect mid-tier retailers.
Investors believe that the U.S. department store chain’s long-term turnaround will lower costs, and its newer product offerings are helping to attract customers.
By CEO NA Editorial Staff