Kohl's Q2 EPS Beats, Raises FY26 Guidance, Restarts Buybacks
KSS sits 56% above its 52-week low of $11.38 on elevated volume (1.8× avg).
Summary
Kohl's reported Q2 EPS of $1.28, raised full-year guidance, and restarted share repurchases up to $100M, supported by $821M in cash and a 305 bps gross margin improvement.
Key Events · Earnings and Guidance · KSS
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Q2 EPS Beats on Tariff Refunds
Diluted EPS of $1.28 vs $1.35 prior year GAAP, but adjusted EPS of $1.28 vs $0.56 prior year adjusted. Gross margin rose 305 bps to 43.0%, with ~$100M of IEEPA tariff refunds flowing through cost of goods sold.
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Full-Year Guidance Raised
Adjusted diluted EPS guidance raised to $1.80-$2.40 (from prior implied range), adjusted operating margin to 3.5%-4.0%, and net sales/comps expected flat to down 1.5%.
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Share Repurchase Program Restarted
Company will repurchase up to $100M of stock in 2026 under existing $3B authorization, funded by $821M cash on hand.
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Balance Sheet Strengthened
Cash and equivalents rose to $821M from $174M a year ago. Long-term debt fell $195M to $1.325B. Adjusted leverage ratio improved to 1.8x from 3.6x unadjusted.
Analysis · KSS · Trade & Services
Kohl's delivered a strong Q2 with gross margin up 305 basis points to 43.0%, driven by $100M of tariff refunds flowing through cost of goods sold. Diluted EPS of $1.28 beat the prior year's adjusted $0.56 by a wide margin. Management raised full-year adjusted EPS guidance to $1.80-$2.40 and announced a restart of share repurchases up to $100M, signaling confidence in the balance sheet turnaround. Cash jumped to $821M from $174M a year ago, giving the company ample liquidity to fund buybacks and dividends.
How filings like this one have moved
In the 30 days to Aug 26, 2026, 29.6% of the 2932 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.01%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, KSS was trading at $17.70 on NYSE in the Trade & Services sector, with a market capitalization of approximately $2B. The 52-week trading range was $11.38 to $25.22. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.