Kohl’s second quarter sales fall slightly to $3.3 billion

• Kohl’s (NYSE:KSS) reported Q2 2026 net sales of $3.3 billion, down 0.9% year over year.
• The company posted net income of $151 million, or $1.28 per diluted share, while gross margin improved to 43.0%.
• Kohl’s received approximately $150 million in tariff refunds during the quarter, with about $100 million benefiting gross margin.

Kohl’s (NYSE:KSS) reported second-quarter 2026 net sales of $3.3 billion, down 0.9% year over year, while comparable sales also declined 0.9%.

The company’s gross margin increased to 43% of net sales, up 305 basis points from the prior-year quarter, while selling, general, and administrative expenses declined 0.9% to $1.2 billion.

Kohl’s reported operating income of $261 million, compared with $279 million a year earlier, while inventory declined 3% year over year to $2.9 billion and operating cash flow reached $552 million.

The company reported net income of $151 million, or $1.28 per diluted share, compared with net income of $153 million, or $1.35 per diluted share, in the prior-year quarter.

Meanwhile, Kohl’s received approximately $150 million in tariff refunds during the quarter, with about $100 million flowing through gross margin, while the company continues operating its retail business across department stores and digital channels.