Kohl's (KSS) Q2 2026 Earnings
How Did KSS Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: −0.06%.
Did KSS Beat Earnings? Q2 2026 Results
Yes. Kohl's reported Q2 2026 earnings of $1.28 a share on Aug 26, 2026, beating the $0.57 consensus estimate by 124.1%. Revenue was $3.5B against a $3.4B estimate.
Kohl's delivered a decisive second-quarter earnings beat, reporting GAAP diluted EPS of $1.28 against a consensus estimate of $0.57, a 124.05% positive surprise that was driven in significant part by a windfall from IEEPA tariff refunds, of which roughly $100.00 million flowed through cost of merchandise sold and powered gross margin expansion of 305 basis points to 43.0%. Revenue of $3.52 billion topped estimates by 3.52%, even as net sales edged down 0.9% year-over-year, reflecting a retail environment where sequential trends improved but comparable sales remained negative. SG&A discipline held costs flat as a percentage of revenue at 33.8%, while the balance sheet strengthened sharply, with cash climbing to $821.00 million from $174.00 million a year earlier. Proprietary brands grew comparable sales 3%, though the Sephora partnership continued to face pressure from key beauty brands expanding distribution to competing retailers. Looking ahead, Kohl's raised full-year 2026 guidance to adjusted diluted EPS of $1.80 to $2.40, announced up to $100.00 million in share repurchases, and declared a $0.13 quarterly dividend.
- Receipt of approximately $150 million in IEEPA tariff refunds, ~$100 million benefitting cost of merchandise sold, drove 305 bps gross margin expansion
- Proprietary brands delivered 3% comparable sales growth in Q2
- SG&A decreased 0.9% from collective savings in stores, corporate, and credit expenses
- Footwear improved approximately 500 basis points from Q1 with fresh inventory and core active brands like Nike and Adidas
- Strong double-digit growth in Toys driven by LEGO, KPOP Demon Hunters, and value towers
- Home drove positive comp led by decor and innovation in small electrics
- Interest expense declined to $63 million from $78 million year-over-year
“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.”
Kohl's CEO, on the earnings call
What Is Kohl's's Outlook?
Kohl's raised its full-year 2026 financial outlook, incorporating the benefit of IEEPA tariff refunds received in Q2. The company now expects: net sales and comparable sales to decrease 1.5% to flat; adjusted operating margin of 3.5% to 4.0%; adjusted diluted EPS of $1.80 to $2.40; capital expenditures of $350 million to $400 million. The company is restarting share repurchases of up to $100 million in 2026 under its existing $3 billion authorization and declared a $0.125 quarterly dividend payable September 23, 2026.
KSS YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $3.5B | $3.5B | −0.9% |
| Gross Profit | $1.4B | $1.4B | +4.8% |
| Operating Income | $261.0M | $161.0M | +62.1% |
| Net Income | $151.0M | $153.0M | −1.3% |
KSS Revenue by Segment
When Does Kohl's Report Next?
Figures from SEC filings and company reports. Not investment advice.