Kohl's Corporation reported its financial results for the second quarter of fiscal 2026, revealing a slight decline in net sales and profitability compared to the same period last year. For the three months ended August 1, 2026, the company generated net sales of $3.318 billion, a decrease of 0.9% from $3.347 billion in the prior year. Total revenue for the quarter was $3.515 billion, down from $3.546 billion, while net income was $151 million, or $1.28 per diluted share, compared to $153 million, or $1.35 per diluted share, in the previous year. The decline in sales was attributed to a decrease in both average transaction value and transaction volume.
In terms of operational metrics, Kohl's reported a gross margin of 43.0%, an increase of 305 basis points year-over-year, driven by tariff refunds totaling approximately $150 million, of which about $100 million was recognized within gross margin. Selling, general, and administrative expenses decreased by 0.9% to $1.188 billion, maintaining a consistent percentage of total revenue at 33.8%. The company’s inventory levels also saw a reduction, totaling $2.913 billion, down 3% from the previous year.
Kohl's continues to focus on strategic initiatives aimed at enhancing customer experience and operational efficiency. The company operates 1,151 stores and has emphasized a balanced merchandise assortment to meet diverse customer needs. Digital sales increased by 2.8% in the second quarter, representing 27% of total net sales, reflecting the company's ongoing investment in its omnichannel capabilities. Additionally, Kohl's has resumed its share repurchase program, planning to buy back approximately $100 million in stock during fiscal 2026.
Looking ahead, Kohl's management remains cautious about the economic environment, including inflation and global trade policies, which could impact merchandise costs and availability. The company plans to invest between $350 million and $400 million in capital expenditures in 2026 to support its strategic priorities. Despite the challenges, Kohl's aims to drive long-term shareholder value through a combination of operational improvements and a commitment to delivering value to customers. The company’s cash and cash equivalents increased significantly to $821 million as of August 1, 2026, compared to $174 million a year earlier, providing a stronger liquidity position to navigate future uncertainties.
About KOHLS Corp
Kohl's Corporation is a leading omnichannel retailer operating over 1,175 stores and an e-commerce platform, offering private and national brands in apparel, footwear, accessories, beauty, and home goods. Its business model combines physical stores and online sales, focusing on value, private brands, and customer experience to serve primarily U.S. consumers. The company emphasizes supply chain efficiency, brand development, and a strong digital presence to maintain competitive advantage.
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