Kohl’s (NYSE:KSS) reported stronger-than-expected earnings for the second quarter of 2024, despite a sales decline, and lifted its full-year profit outlook.
The department store chain posted adjusted earnings of $0.59 per share for the quarter, exceeding Street predictions of $0.44 per share. However, revenue dropped 4.2% year-over-year to $3.53 billion, falling short of the $3.69 billion consensus estimate. Comparable sales also saw a 5.1% decline during the quarter.
Despite the drop in sales, Kohl’s managed to boost its gross margin by 59 basis points to 39.6% and successfully reduced its inventory levels by 9% compared to the same period last year.
Looking forward, Kohl’s increased its full-year earnings guidance to a range of $1.75 to $2.25 per share, above the Street consensus of $1.53 per share. The previous guidance range was $1.25 to $1.85 per share. However, the company revised its sales outlook, now expecting net sales to decline 4% to 6% for the year, while projecting comparable sales to decrease by 3% to 5%.