Kohl’s Q2 performance comes ahead of expectations amid turnaround plan

Progress has been made with the turnaround strategy of Kohl’s. The US retail giant reported a “sales performance that came in ahead of our expectations” for the second quarter, interim CEO, Michael Bender, said.

“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,” said Bender.

Despite net sales decreasing 5.1 percent to 3.3 billion dollars, operating income widened from 166 million dollars in the same period of the year prior to 279 million dollars. Net income came to 153 million dollars, or 1.35 dollars per diluted share.

Gross margin as a percentage of net sales sat at 39.9 percent, increasing 28 basis points, while SG&A expenses fell 4.1 percent year-over-year to 1.2 billion dollars.

Positivity could also be seen during the first half of the year, during which operating income rose from 209 million dollars to 339 million dollars. This came despite net sales dropping 4.6 percent YoY to 6.4 billion dollars.

On the back of more upbeat results, Kohl’s said it was raising its full year 2025 financial outlook. Net sales are expected to decrease between 5 and 6 percent, while its adjusted operating margin is anticipated to be in the range of 2.5 to 2.7 percent. Its adjusted diluted EPS is expected to be between 50 to 80 cents.