\nKohl\u2019s Corporation (NYSE: KSS) (\u201cKohl\u2019s\u201d or the \u201cCompany\u201d) today reported results for the second quarter ended August 1, 2026.<\/p>\n
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- Net sales decreased 0.9% and comparable sales decreased 0.9%<\/b><\/li>\n
- Gross margin increased 305 basis points<\/b><\/li>\n
- Diluted earnings per share (\u201cEPS\u201d) of $1.28 and a year to date EPS of $1.18<\/b><\/li>\n
- Raises full year 2026 financial outlook<\/b><\/li>\n
- Restarting share repurchase program<\/b><\/li>\n<\/ul>\n
\nMichael Bender, Kohl\u2019s Chief Executive Officer, said, \u201cWe 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.<\/p>\n
\nImportantly, we have made significant strides in building a strong balance sheet through diligent operational focus across the organization. This provides us a critical foundation as we invest in the business, lead with value for our customers, and return capital to our shareholders. I would like to thank the entire Kohl\u2019s team for their hard work and commitment to serving our customers every day.\u201d Bender continued.<\/p>\n
Second Quarter 2026 Results<\/span><\/b><\/p>\n
Comparisons refer to the 13-week period ended August 1, 2026 versus the 13-week period ended August 2, 2025<\/i><\/p>\n
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- Net sales <\/b>decreased 0.9% year-over-year, to $3.3 billion, with comparable sales also down 0.9%.\n<\/li>\n
- Gross margin<\/b> as a percentage of net sales was 43.0%, an increase of 305 basis points year-over-year.\n<\/li>\n
- Selling, general & administrative (SG&A) expenses<\/b> decreased 0.9% year-over-year, to $1.2 billion. As a percentage of total revenue, SG&A expenses were 33.8%, consistent with the prior year.\n<\/li>\n
- Operating income <\/b>was $261 million compared to $279 million in the prior year. As a percentage of total revenue, operating income was 7.4%, a decrease of 45 basis points year-over-year. Adjusted operating income was $161 million and 4.6% of total revenue in the prior year.(a)<\/sup><\/li>\n
- Net income <\/b>was $151 million, or $1.28 per diluted share. This compares to net income of $153 million, or $1.35 per diluted share and adjusted net income of $64 million, or $0.56 per adjusted diluted share, in the prior year.(a)<\/sup><\/li>\n
- Inventory<\/b> was $2.9 billion, a decrease of 3% year-over-year.\n<\/li>\n
- Operating cash flow<\/b> was $552 million compared to $598 million in the prior year.\n<\/li>\n
- Tariff refunds<\/b> of approximately $150 million were received in the quarter of which approximately $100 million flowed through gross margin.\n<\/li>\n<\/ul>\n
Six Months Fiscal Year 2026 Results<\/span><\/b><\/p>\n
Comparisons refer to the 26-week period ended August 1, 2026 versus the 26-week period ended August 2, 2025<\/i><\/p>\n
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- Net sales <\/b>decreased 1.2% year-over-year, to $6.3 billion, with comparable sales down 1.0%.\n<\/li>\n
- Gross margin<\/b> as a percentage of net sales was 41.5%, an increase of 162 basis points.\n<\/li>\n
- Selling, general & administrative expenses<\/b> decreased 1.3% year-over-year, to $2.3 billion. As a percentage of total revenue, SG&A expenses were 34.9%, anincrease of 6 basis points year-over-year.\n<\/li>\n
- Operating income <\/b>was $307 million compared to $339 million in the prior year. As a percentage of total revenue, operating income was 4.6%, a decrease of 41 basis points year-over-year. Adjusted operating income was $221 million and 3.3% of total revenue in the prior year. (a)<\/sup><\/li>\n
- Net income <\/b>was $137 million, or $1.18 per diluted share. This compares to net income of $139 million, or $1.23 per diluted share, in the prior year and adjusted net income of $50 million, or $0.44 per adjusted diluted share, in the prior year. (a)<\/sup><\/li>\n
- Long-term debt<\/b> decreased $195 million to the prior year, primarily driven by $113 million of debt repurchased at a discount of $15 million in 2026 and $87 million of debt repurchases in the prior year.\n<\/li>\n
- Operating cash<\/b>flow<\/b> was $478 million compared to $506 million in the prior year.\n<\/li>\n<\/ul>\n
- Gross margin<\/b> as a percentage of net sales was 41.5%, an increase of 162 basis points.\n<\/li>\n
- Gross margin<\/b> as a percentage of net sales was 43.0%, an increase of 305 basis points year-over-year.\n<\/li>\n
- Gross margin increased 305 basis points<\/b><\/li>\n
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