Kohl’s reported second-quarter adjusted earnings of $1.28 per share, beating the 57-cent consensus estimate, while net sales fell 0.9% year over year to $3.32 billion and total revenue reached $3.52 billion. Gross margin expanded 305 basis points to 43%, helped by about $100 million of merchandise-cost benefits from roughly $150 million in tariff refunds. The company raised its fiscal 2026 adjusted earnings outlook to $1.80-$2.40 per share from $1.00-$1.60 and increased its sales forecast to $15.29 billion-$15.53 billion, while improving comparable-sales guidance from a 1.5% decline to flat. Management said financially pressured customers remained cautious about discretionary purchases, Sephora at Kohl’s sales fell 4% in the quarter, and holiday merchandise would arrive earlier to capture demand. Kohl’s plans to resume up to $100 million in share repurchases in 2026 and declared a quarterly dividend of 12.5 cents per share. Shares were up 1.72% at $17.98 at publication, revising an earlier report of a premarket decline of more than 8%.