Kohl's CorporationKSS

Why is Kohl's (KSS) moving?

Q3 202620 Jul – 12 Sep 2026

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Kohl's Q2 beat driven by tariff refunds, not sales

Q2 earnings beat and raised outlook Kohl's reported Q2 EPS of $1.28, beating expectations, and raised its full-year profit outlook to $1.80–$2.40 while restarting buybacks of up to $100 million. This initially cheered investors.
This is the headline event that drove the stock in August.
Profit boost came from tariff refunds, not sales About 98% of gross margin gains came from roughly $150 million in tariff refunds, not from selling more merchandise. This raises doubts about the sustainability of the profit beat.
It reveals the low quality of earnings, a key reason the stock may not hold gains.
18th straight quarter of falling same-store sales Comparable sales fell 0.9%, the 18th consecutive quarterly decline, with total revenue down 2%—the weakest among general merchandise peers. Low-income shoppers remain stressed, and broader consumer pullback pressures demand.
It shows the core business continues to shrink, a major headwind for the stock.
New growth initiatives, but unproven Kohl's is expanding DoorDash rapid delivery to 1,100+ stores, adding Martha Stewart and Babies"R"Us shop-in-shops, and hiring a new Chief Merchandising Officer from Walmart. These could help, but benefits are unproven and don't yet signal a recovery.
These are the main positive efforts that could drive future performance, though their impact is uncertain.

August 202620 Jul – 12 Sep 2026

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Kohl's Q2 beat driven by tariff refunds, not sales

Q2 earnings beat and raised outlook Kohl's reported Q2 EPS of $1.28, beating expectations, and raised its full-year profit outlook to $1.80–$2.40 while restarting buybacks of up to $100 million. This initially cheered investors.
This is the headline event that drove the stock in August.
Profit boost came from tariff refunds, not sales About 98% of gross margin gains came from roughly $150 million in tariff refunds, not from selling more merchandise. This raises doubts about the sustainability of the profit beat.
It reveals the low quality of earnings, a key reason the stock may not hold gains.
18th straight quarter of falling same-store sales Comparable sales fell 0.9%, the 18th consecutive quarterly decline, with total revenue down 2%—the weakest among general merchandise peers. Low-income shoppers remain stressed, and broader consumer pullback pressures demand.
It shows the core business continues to shrink, a major headwind for the stock.
New growth initiatives, but unproven Kohl's is expanding DoorDash rapid delivery to 1,100+ stores, adding Martha Stewart and Babies"R"Us shop-in-shops, and hiring a new Chief Merchandising Officer from Walmart. These could help, but benefits are unproven and don't yet signal a recovery.
These are the main positive efforts that could drive future performance, though their impact is uncertain.

Latest20 Jul – 12 Sep 2026

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Kohl's: tariff refunds boost profit, but sales still falling

Tariff refunds inflate profit, not sales Kohl's raised its full-year profit outlook and restarted share buybacks after about $150 million in tariff refunds. But roughly 98% of its gross margin gain came from those refunds, and comparable sales fell for an 18th straight quarter. The profit boost is real but not from selling more.
This is the single biggest new force behind KSS's improved earnings picture and explains why the profit gain may not last.
New delivery and merchandise partnerships Kohl's launched DoorDash rapid delivery from over 1,100 stores and expanded its Martha Stewart kitchen line onto Kohls.com. These widen how customers can buy and refresh the product mix, which could help digital sales and customer reach, though the financial benefit is not yet proven.
These are new distribution and merchandising moves that could support future demand, a genuine positive driver.
New merchandising chief and baby-shop expansion Kohl's named a new Chief Merchandising Officer from Walmart and is adding Babies"R"Us shops to 56 more stores. Both aim to fix weak merchandise and win back customers, but comparable sales are still down 0.9% and analysts say 18 straight quarters of declines don't signal a full recovery.
These are the period's main strategic efforts to reverse weak sales, with a clear counterweight that results aren't there yet.
Consumer spending slowdown pressures sales Weak results from Albertsons and Tractor Supply signaled shoppers are pulling back, and Kohl's shares fell 5% in July on those fears. Kohl's also posted a 2% revenue decline, the slowest grower among general merchandise peers, showing demand remains the core problem.
This explains the demand weakness that keeps KSS's sales falling despite profit-boosting one-offs.

26 Aug – 27 Aug 2026

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Kohl's Q2 EPS Beat, Raised Outlook, Buybacks; Sales Still Weak

Q2 earnings beat and raised full-year outlook Kohl's reported Q2 EPS of $1.28, far above the $0.55 consensus, and raised its full-year earnings outlook to $1.80–$2.40 from $1.00–$1.60. This profit surge, partly from tariff refunds, gives investors a reason to bid the stock higher.
The earnings beat and guidance raise are the main new positive catalysts for KSS this period.
Restarted share buybacks up to $100 million Kohl's said it will restart share repurchases of up to $100 million in 2026 under its existing $3 billion authorization. Buybacks reduce the number of shares outstanding, which can lift earnings per share and support the stock price.
Buybacks are a new capital-return action that directly supports the share price.
Comparable sales fell 0.9%, missing expectations Kohl's Q2 comparable sales dropped 0.9%, worse than the 0.6% decline analysts expected, and total revenue slipped to $3.52 billion. The weak top line shows customers are still pulling back, which weighs on the stock and limits how much the profit beat can lift it.
The sales miss is the key negative counterweight to the earnings beat.
Low-income consumer stress threatens future demand Reports highlight that low-income shoppers are under pressure, with diesel prices up over 40% and half of Americans living paycheck to paycheck. Since Kohl's depends on these shoppers, continued stress could hurt sales in coming quarters and keep a lid on the stock.
This explains the demand risk that could offset the positive earnings news.