Kohl's Reports Q2 Gains, Raises FY2025 Profit and Sales Guidance

Kohl's has raised its annual profit forecast for fiscal 2025, expecting earnings per share between 50 and 80 cents, up from an earlier range of 10 to 60 cents, driven by cost controls and efforts to attract customers during the holiday season. The company reported second-quarter adjusted earnings per share of 56 cents, significantly beating estimates of 29 cents, despite a 4.2% decline in comparable sales which was smaller than expected. Interim CEO Michael Bender highlighted improvements in gross margins, inventory reduction, and lowered expenses as key factors behind the solid quarterly earnings. Kohl's is continuing to downsize certain operations such as closing an e-fulfillment center and trimming inventory in specific product lines as part of its ongoing turnaround strategy. The company’s disciplined management and focus on newer products and better value offerings aim to sustain progress amid a challenging economic environment. Overall, Kohl's shares rose sharply in premarket trading following the earnings report and profit forecast update.