Kohl's Corporation

Abercrombie & Fitch soared 37% after trouncing fiscal second-quarter estimates and raising its full-year outlook, with adjusted earnings of $2.42 per share and revenue up 5% to $1.27 billion, helped by tariff refunds and stronger growth at its Abercrombie unit. Intuit fell 4% after offering disappointing fiscal year 2027 guidance of $23.3 billion to $23.5 billion in revenue, below the $23.7 billion analyst estimate, though its fiscal fourth-quarter earnings and revenue beat expectations. Meta Platforms jumped 3% after reaching a settlement with state attorneys general in a case alleging it made its apps addictive to teenagers. Zoom Communications dropped 7% after its third-quarter forecast of $1.46 to $1.48 earnings per share missed the $1.50 estimate. Kohl's rose 2% after raising its full-year outlook, partly due to $150 million in tariff refunds, and announced share buybacks of up to $100 million in 2026. J.M. Smucker climbed 3% on fiscal first-quarter revenue of $2.22 billion, topping the $2.13 billion consensus. SolarEdge Technologies jumped nearly 8% after a UBS upgrade to buy, citing an FCC policy expected to boost market share and pricing power. Semtech rose over 8% on second-quarter earnings beat, with adjusted EPS of 71 cents versus 61 cents expected. Boston Scientific fell 5% after reporting a cybersecurity incident causing product disruptions. SAP declined 3% after a UBS downgrade to neutral, citing slow delivery of agentic AI.

Four major retailers reported Wednesday morning, all beating expectations and raising guidance, but a significant portion of those profits came from a Supreme Court decision rather than stronger consumer spending. The court struck down IEEPA tariffs on February 20th, triggering roughly $166 billion in collections from some 330,000 importers, with about $100 billion refunded as of July 31st. Walmart disclosed the largest refund, while Lowe's received $80 million, about one-ninth of Home Depot's amount. Abercrombie & Fitch reported record second-quarter net sales of $1.27 billion, up 5%, and earnings of $4.17 per diluted share, but the IEEPA refund contributed $1.75 per share, making underlying EPS about $2.42. Williams-Sonoma stood out with comparable brand revenue up 6.2%, accelerating from 4.8% last quarter, and raised its full-year outlook. Kohl's beat with EPS of $1.28 against roughly $0.55 expected, and Bath & Body Works beat despite a 2.3% sales decline. The macro data shows consumers feel better about today but worse about tomorrow, with core PCE rising 0.2% month over month. Investors should normalize for tariff refunds, watch how retailers deploy the windfall, and focus on companies that didn't need the help, like Williams-Sonoma and Sam's Club.

Kohl's Corporation reported adjusted earnings of $1.28 per share for the second quarter of fiscal 2026, up 128.6% from 56 cents a year ago and beating the Zacks Consensus Estimate of 55 cents. Total revenues fell 0.9% year over year to $3,515 million, narrowly missing the consensus estimate of $3,516 million, while comparable sales declined 0.9%. Gross margin expanded 305 basis points to 43%, aided by about $150 million in IEEPA tariff refunds, with roughly $100 million benefiting cost of merchandise sold. The company ended the quarter with $821 million in cash, up from $174 million a year earlier, and is restarting share repurchases of up to $100 million in 2026 under its existing $3 billion authorization. Kohl's raised its fiscal 2026 outlook, now expecting net sales and comparable sales to range from flat to down 1.5%, adjusted operating margin of 3.5-4%, and adjusted earnings of $1.80-$2.40 per share, up from prior guidance of a $1.00-$1.60 range.

Kohl's reported second-quarter earnings of $1.28 per share, beating the Zacks Consensus Estimate of $0.55 per share and surpassing the year-ago earnings of $0.56 per share. Revenue for the quarter ended July 2026 came in at $3.52 billion, slightly missing the consensus estimate by 0.02% and down from $3.55 billion a year earlier. The company has beaten EPS estimates in each of the last four quarters. Kohl's shares have fallen about 13.4% since the start of the year, while the S&P 500 has gained 12.2%. The stock currently holds a Zacks Rank #2 (Buy), and the consensus EPS estimate for the current fiscal year stands at $1.38 on revenues of $15.38 billion.

Kohl's announced several developments in August 2026, including expanding Martha Stewart kitchen electrics from Amazon into Kohl's stores and Kohls.com, launching a DoorDash partnership for rapid delivery from more than 1,100 locations, and declaring a regular quarterly dividend of US$0.125 per share payable on September 23, 2026. These moves aim to refresh the merchandise mix and widen distribution ahead of the upcoming second quarter earnings release. The DoorDash partnership ties Kohl's more directly into rapid delivery for apparel and home goods, potentially affecting digital conversion and customer reach metrics. Kohl's narrative projects $15.5 billion revenue and $202.0 million earnings by 2029, assuming fairly flat yearly revenue growth and a $70.0 million earnings decrease from $272.0 million today. Some analysts are more cautious, assuming revenue drifts to about US$14.8 billion and earnings to roughly US$204 million.

DoorDash announced new back to school delivery partnerships with Barnes & Noble, Carter's, Kohl's and Gap/Gap Factory, marking its largest push into nationwide retail, books and department stores. The partnerships extend DoorDash's delivery coverage into books, kids' apparel and broader department store categories across the US ahead of the back to school shopping period. These additions expand DoorDash's non-food offering and give users more ways to consolidate everyday and seasonal spending within the platform.

Kohl's declared a quarterly dividend of $0.125 per share, in line with the previous payout. The dividend is payable September 23 to shareholders of record on September 9, with the ex-dividend date also September 9. Based on the current share price, the forward yield is 2.67%.

Kohl's has launched a new back-to-school campaign featuring an AI-powered shopping assistant, alongside community support initiatives benefiting the Boys & Girls Clubs of America. The AI tool aims to help shoppers sort through choices, tailor picks to budgets, and organize lists, while the campaign emphasizes thousands of items priced under $25 to attract value-oriented customers. The company is pairing the tech push with grants to the Boys & Girls Clubs, seeking to blend convenience and charitable giving to influence brand perception and repeat visits. Investors will watch whether the assistant drives higher basket sizes, repeat visits, and improved same-store sales during this key shopping window.

Kohl's posted its best comparable sales in over four years, Chewy's near-zero debt and record 8% EBITDA margin sparked acquisition talk on Reddit, and Wayfair surged 29% in a month toward analyst fair value above $93. Kohl's comparable sales fell 1.1% in the fiscal first quarter, revenue reached $3.17 billion, inventory dropped 8% year over year, and revolving credit borrowings fell to zero from $545 million. Chewy's first-quarter revenue rose 8% to $3.36 billion, with Autoship at 84% of net sales and 21.5 million active customers, while a $200 million buyback was completed in the quarter. Wayfair's 5.2% adjusted EBITDA margin was its strongest first quarter in five years, but a stockholders' deficit of $2.84 billion and $2.9 billion in long-term debt keep the risk profile elevated.

Kohl's juniors business grew 10% in the first quarter of fiscal 2026, led by strength from its proprietary So. brand. The performance contributed to flat to slightly positive comparable sales across the women's, kids', home and accessories businesses, making juniors one of the clearest areas of progress within the company's merchandising initiatives. Company-wide comparable sales declined 1.1% in the quarter, indicating that the strength in juniors stood out against an overall business that remains under pressure. Kohl's plans to expand the So. brand into additional dress and casual categories through its office edit collection.

Kohl's Corporation reported that its proprietary brands delivered a 6% comparable sales increase in the first quarter of fiscal 2026, supporting merchandise margin and reinforcing the company's value proposition. Gross margin expanded 4 basis points year over year to 39.9%, driven by higher proprietary brand penetration, though the benefit was largely offset by increased shipping costs tied to higher digital penetration. Key labels such as FLX and Tek Gear showed strength across categories, with Juniors rising 10% led by the So brand, and Kohl's plans to roll out FLX to Kids in all stores by June. The company's shares have surged 114.1% over the past year, and it trades at a forward price-to-earnings ratio of 13, slightly below the industry average of 13.32.