Kohl's Corporation (NYSE:KSS) raised its full-year profit forecast on Wednesday after second-quarter earnings crushed Wall Street estimates, helped by roughly $150 million in tariff refunds and a sharp jump in gross margin.
The retailer posted adjusted earnings of $1.28 per share, more than double the 57-cent estimate analysts had projected, while revenue of $3.515 billion also topped forecasts of $3.345 billion.
Net sales fell 0.9% from a year earlier, marking the 18th consecutive quarter of negative comparable sales, though the pace of decline has continued to narrow. Gross margin climbed 305 basis points to 43%.
Kohl's now expects full-year adjusted earnings per share of $1.80 to $2.40, up from its prior range of $1 to $1.60 and above the $1.43 analysts had estimated. The company also lifted its sales guidance to a range of $15.294 billion to $15.527 billion, compared with estimates of $14.891 billion.
The retailer said it is restarting share buybacks, with plans to repurchase up to $100 million this year under its existing $3 billion authorization.
Kohl's cash position strengthened to $821 million, while long-term debt declined $195 million from a year earlier.
Shares of Kohl's ticked up 0.6% following the report.