Companies

Kohl`s Corp

NYSE: KSS
$18.15
â–² $0.21 (+1.17%) today
Markets closed · 6:13pm ET

Q2 2027 Earnings

Reported Aug 26, 2026, 7:00am ET · SEC source
$1.28
Beat +124.05%
EPS · est. $0.57 Adjusted
$3.5B
Beat +3.52%
Revenue · est. $3.4B
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−8%−4%0Aug 26Aug 27report 7:00am ETearnings+0.8%−2.3%
−12%−8%−4%0Aug 26Aug 27earnings+0.8%−2.3%
KSS −2.3%S&P 500 +0.8%
−10%−5%0Aug 26Aug 27report 7:00am ETearnings+1.4%−2.3%
−10%−5%0Aug 26Aug 27earnings+1.4%−2.3%
KSS −2.3%NASDAQ +1.4%
0+4%+8%Aug 25Aug 27report 7:00am ETearnings+0.6%+9.9%
0+4%+8%Aug 25Aug 27earnings+0.6%+9.9%
KSS +9.9%S&P 500 +0.6%
0+4%+8%Aug 25Aug 27report 7:00am ETearnings+1.4%+9.9%
0+4%+8%Aug 25Aug 27earnings+1.4%+9.9%
KSS +9.9%NASDAQ +1.4%
+1.47%
Day of report
+1.17%
Next session

Did KSS Beat Earnings? Q2 2027 Results

Kohl's delivered a sharp earnings beat in its fiscal second quarter of 2027, posting adjusted diluted EPS of $1.28 against a consensus estimate of $0.57, a 124.05% positive surprise that extended the retailer's streak of beating EPS estimates to five consecutive quarters. Revenue of $3.52 billion topped the $3.40 billion consensus by 3.52%, even as net sales slipped 0.9% year over year, a sign that the underlying business remains under pressure despite the headline numbers. The standout driver was a 305 basis-point expansion in gross margin to 43.0%, fueled largely by roughly $150 million in IEEPA tariff refunds received during the quarter, approximately $100 million of which flowed directly through cost of merchandise sold. The cash position swelled to $821 million from $174 million a year ago, and management restarted share repurchases of up to $100 million, a signal of confidence in near-term cash generation. Looking ahead, Kohl's raised its full-year 2026 guidance, now targeting adjusted diluted EPS of $1.80 to $2.40 and an adjusted operating margin of 3.5% to 4.0%, with comparable sales expected to range from flat to down 1.5%.

Key Takeaways
  • Approximately $150 million in IEEPA tariff refunds received, with ~$100 million benefitting Cost of Merchandise Sold, driving 305 basis point gross margin expansion
  • Proprietary brands delivered 3% comparable sales growth in Q2
  • SG&A expenses declined 0.9% from collective savings in stores, corporate, and credit expenses
  • Interest expense declined to $63 million from $78 million year-over-year due to debt reduction
  • Home drove positive comp led by decor and innovation in small electrics
  • Jewelry and impulse categories continue as growth drivers for Accessories
  • LEGO, KPOP Demon Hunters, and value towers helped deliver strong double-digit growth in Toys
  • Strong marketplace growth from expanded product assortment

“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

Forward Guidance & Outlook

Kohl's raised its full-year fiscal 2026 guidance, incorporating the benefit of IEEPA tariff refunds received in Q2. The company now expects: net sales and comparable sales of flat to down 1.5% versus 2025; adjusted operating margin of 3.5% to 4.0%; adjusted diluted EPS of $1.80 to $2.40; and capital expenditures of $350 million to $400 million. Kohl's is restarting share repurchases of up to $100 million in 2026 under its existing $3 billion authorization and declared a quarterly dividend of $0.125 per share.

KSS YoY Financials

Q2 2027 vs Q2 2026 · SEC filings Q2 2026 Q2 2027
$0$1.0B$2.0B$3.0B$3.5B$3.5BRevenue$1.4B$1.4BGross Profit$161.0M$261.0MOperating Income$153.0M$151.0MNet Income
$0$1.0B$2.0B$3.0BRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.