Kohl's stock rises after a profit-guidance lift
Published on 09/01/2026 at 15:15 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Kohl's Corporation (ISIN US5002551043) stock is trading near $18.19 after fiscal second-quarter 2026 results lifted adjusted diluted EPS to $1.28 from $0.56 a year earlier and pushed management to raise full-year guidance. The shares were quoted at $18.19 on August 28, 2026, and the same update said the stock was up 0.2% in late trading.
Profit beat, sales still fell
The latest update put net sales and comparable sales down 0.9% in the quarter, while gross margin reached 43.0%, up 305 basis points year over year. A separate report said about $150 million of tariff refunds flowed into the quarter, and that roughly $100 million of the refunds reduced merchandise costs and helped gross profit.
The guidance change was concrete as well: Kohl's raised its company-defined non-GAAP adjusted diluted EPS forecast to $1.80 to $2.40 from $1.00 to $1.60. That midpoint increase of $0.80 was tied in part to roughly $0.65 of tariff-refund benefit, so the profit upgrade carried a clear non-recurring tailwind.
Operations remain mixed
The operating backdrop was softer than the earnings headline. Comparable sales have now been negative for 18 straight quarters, and the company said inventory fell 3% as it cut depth behind selected products.
There was one brighter detail inside the quarter: digital sales increased 2.8%, and sales involving Kohl's Card customers rose more than 1%. Those figures matter because they show where customer engagement improved even as broad demand stayed pressured.
Why the margin math matters
Gross margin expansion was unusually reliant on the refunds. One report said gross margin would have increased only about 5 basis points without the tariff benefit, which means nearly all of the 305 basis-point gain came from that item rather than from a broad structural reset.
Kohl's product mix
The retailer's department-store mix still depends on everyday value categories, beauty through Sephora at Kohl's, and opening-price-point merchandise. In the reported quarter, women's sales fell 1.5%, and sales tied to the Sephora partnership declined 4%, showing where the assortment still needs work.
Stock level and setup
The stock's August 28, 2026 quote of $18.19 leaves it trading on the same session that brought the profit update into the market. For investors, the key question is whether the improved earnings line can hold once the tariff-refund effect fades from future quarters.
Read more on Kohl's stock
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Fact box
Company: Kohl's Corporation
ISIN: US5002551043
Ticker: KSS
Exchange: NYSE
Price (as of August 28, 2026, 4:13 p.m. ET): $18.19 USD
Sector / Industry: Consumer Discretionary / Multiline Retail
More on Kohl's stock
The Kohl's stock setup now depends less on the size of the tariff refund and more on whether sales trends stop slipping. The latest quarter showed a $1.28 adjusted EPS print, a 0.9% sales decline, and a 43.0% gross margin, all inside one report cycle.
