Kohl’s raises profit forecast as turnaround gains momentum
Kohl’s (KSS.N) lifted its annual profit outlook on Wednesday after stronger-than-expected second-quarter results, sending shares up 15% in premarket trading. The U.S. retailer credited cost-cutting and inventory reductions as it works to win back shoppers ahead of the holiday season.
The company now expects annual earnings of 50 to 80 cents per share, up from its prior 10 to 60 cents. Interim CEO Michael Bender said Kohl’s expanded margins, cut expenses and reduced inventory, which helped deliver “solid second-quarter earnings.” Adjusted EPS came in at 56 cents, topping estimates of 29 cents, News.Az reports, citing Reuters.
Comparable sales fell 4.2% in the quarter ended August 2, but the decline was smaller than analysts’ expectations of 5%. Kohl’s has closed an Ohio e-fulfillment center, scaled back its jewelry business, and trimmed in-house brands as part of its turnaround strategy.
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