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Investing.com -- Kohl’s Corporation shares surged 15% premarket on Wednesday after the retailer reported second-quarter adjusted earnings that significantly exceeded analyst expectations, despite ongoing sales challenges in a difficult consumer environment.
The department store chain posted adjusted earnings per share of $0.56 for the quarter ended August 2, 2025, handily beating the analyst consensus of $0.30 by 26 cents. While revenue decreased 5.1% YoY to $3.35 billion, slightly below the analyst estimate of $3.37 billion, the company’s cost-cutting measures and margin improvements helped drive the earnings outperformance. Comparable sales declined 4.2% compared to the same period last year.
Kohl’s stock jumped 15% following the results, as investors responded positively to the earnings beat and raised full-year outlook. The company also reported a 28 basis point improvement in gross margin to 39.9% and reduced inventory by 5% YoY.
"Kohl’s second quarter performance is a testament to the progress we are making against our 2025 initiatives," said Michael Bender, Kohl’s Interim Chief Executive Officer. "We were able to expand our gross margins, reduce our inventory, and lower our expenses, leading to solid second quarter earnings."
The retailer raised its full-year 2025 guidance, now expecting adjusted earnings per share between $0.50 and $0.80, with the midpoint of $0.65 exceeding previous forecasts. Kohl’s anticipates net sales to decline between 5% and 6% for the year, with comparable sales expected to decrease 4% to 5%.
The company also declared a quarterly cash dividend of $0.125 per share, payable on September 24 to shareholders of record as of September 10.