Kohl’s posted a weak financial performance for the 13 weeks ended on 1 August, 2026, with net sales decreasing by 0.9 per cent year-over-year to $3.3bn.
The company’s operating income was reduced to $261m compared to $279m posted in the year prior. There were declining sales at the retailer despite tariff refunds of approximately $150m during the quarter.
Kohl’s second quarter net income also went down to $151m compared to $153m in the previous year. The company’s overall inventory decreased by 3 per cent year-over-year to approximately $2.9bn.
For the first half of the year, Kohl’s net sales reduced by 1.2 per cent year-over-year to approximately $6.3bn, with comparable sales down by 1 per cent.
Kohl’s first-half net income was reduced to $137m compared to $139m last year, and the operating cashflow went down to $478m from $506m last year.
Despite the declining sales, the business has a positive outlook for the upcoming second half and raised its financial expectations.
The company now expects net sales and comparable sales to be in the range of a decrease of 1.5 per cent to flat.
Kohl’s has also forecasted an adjusted diluted EPS in the range of $1.80 to $2.40 and capital expenditures of between $350m and $400m.
Michael Bender, Kohl’s CEO, said: “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 organization.”
The steep decline comes after the department store retailer reported signs of progress in its first quarter, which marked an improvement after four years.
The retailer also made changes to its executive leadership team, recently naming its first-ever chief customer officer as it makes efforts to boost its overall experience among shoppers.
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