The Kohl’s Recesson

Kohl's (KSS) +8%, Macy's (M) +3% as investors rotate into undervalued department stores, while Abercrombie & Fitch (ANF) -2%. Kohl's reported Q2 EPS beat but declining sales; raised FY guidance. SPDR S&P Retail ETF (XRT) +0.8%.

Kohl's (KSS) reported Q2 2027 net sales of $3.3B, down 0.9% YoY. Gross margin rose to 43.0% due to $100M in tariff refunds. Adjusted EPS guidance raised to $1.80-$2.40. Inventory decreased 3%, while digital sales grew 2.8%. Marketplace sales surged 88%, but Sephora at Kohl's sales fell 4%. The company plans to repurchase $100M in stock and reduce debt.

Kohl's (KSS) reported mixed Q2 results: adjusted EPS rose to $1.28 (from $0.56 YoY), but GAAP EPS fell to $1.28 (from $1.35). Sales declined 0.9%, marking 18 straight quarters of negative comparable sales. The company raised its non-GAAP EPS guidance to $1.80-$2.40, citing $150M in tariff refunds, which drove 98% of gross margin expansion. Management highlighted improved digital sales and inventory management but noted ongoing financial pressures for low- and middle-income customers.

Kohl's reported Q2 earnings, highlighting 3% growth in proprietary-brand sales and 1% growth in home sales. Inventory declined 3%, while receipts increased 7%. Marketplace grew 88% YoY. The company raised its outlook, expecting comparable sales to decline 1.5% to flat and adjusted EPS of $1.80 to $2.40. Kohl's ended the quarter with $821M in cash and resumed share repurchases.

Kohl's Corp (KSS) reported a 0.9% decline in Q2 comparable sales, with Sephora sales down 4% and women's business down 1.5%. Macroeconomic pressures and inventory constraints were noted. Gross margin increased slightly, while credit revenue declined. The company expects flat to down 2% sales in the back half, with investments in inventory and pricing. EPS guidance was raised by $0.80, including $0.65 from tariff refunds. Free cash flow is projected at $600 million, with plans for $100 million in

Kohl's Corp (KSS) reported a 124.6% EPS surprise at $1.28, but shares fell ~7% premarket due to a revenue miss and concerns over tariff-refund quality. Gross margin improved to 43.0% from 39.9%, but $100M of this came from tariff refunds. Management raised full-year EPS guidance to $1.80–$2.40, including $0.65/share from refunds. Marketplace sales grew 88% in Q2, and proprietary brands showed strength. The stock trades at $18.08 with a 2.8% dividend yield and a P/E of 7.5x.