KSS

In Q2 2026, Kohl's reported diluted EPS of $1.28, significantly beating estimates, and revenue of $3.52 billion, despite a 0.9% decrease in sales, with profit boosted by $150 million in tariff refunds. Following these results, Kohl's raised its full-year 2026 adjusted EPS outlook to $1.80-$2.40 and adjusted operating margin to 3.5%-4.0%, also restarting its share repurchase program with an authorization of up to $100 million. Despite the earnings beat, the stock's initial reaction was muted due to investor caution regarding sales trajectory and demand challenges. Shares later rebounded in late September and early October 2026, partly due to broader retail sector strength, but concerns persisted over declining sales, high short interest (41.38%), and a cautious analyst sentiment. The company's expanded 'Deal Days' event also raised concerns about potential margin pressure. Kohl's declared a quarterly cash dividend of $0.125 per share on August 18, 2026, payable on September 23, 2026.