Kohl’s net sales decreased 0.9% to $3.3 billion for the three months ended August 1, 2026, while Net Income reached $151 million. Gross Margin expanded 305 basis points and SG&A expenses declined 0.9%, offsetting part of the sales pressure and shaping the retailer’s second-quarter Earnings profile.

Key Highlights

  • Gross margin increased 305 basis points from the comparable period.
  • Kohl’s operated 1,151 stores and a website as of August 1, 2026.
  • Cash and cash equivalents totaled $821,000,000 ($821 million), with no borrowings under the revolving Credit facility.

Net income was $151,000,000 ($151 million), with Basic Earnings Per Share of $1.34 and Diluted Earnings per Share of $1.28.

Revenue And Earnings Results

Net sales declined 0.9% during the quarter, and comparable sales also decreased 0.9%. The company said the sales reduction reflected equal decreases in average transaction value and transaction volume. Digital sales increased 2.8%, while digital penetration reached 27% of net sales. Accessories, including Sephora, generated $673 million, unchanged from the comparable period. Home sales rose 1.2% to $411 million, while Women’s sales decreased 1.6% to $928 million. Men’s sales declined 1.0% to $682 million. Children’s sales fell 0.3% to $334 million, and Footwear sales decreased 3.7% to $290 million.

Margin And Expense Results

Cost of merchandise sold was $1,893 million. SG&A represented 33.8% of total revenue, unchanged as a percentage of revenue. Depreciation and amortization was $173 million. Operating Income reached $261 million, while interest expense, net, was $63 million. Income before income taxes was $198 million, and the provision for income taxes was $47 million.

Cash Balance And Store Network

Kohl’s ended the period with cash and cash equivalents of $821,000,000 ($821 million). The company had no borrowings under its revolving credit facility. The retailer operated 1,151 stores and a website as of August 1, 2026. Its stores and website sell apparel, footwear, accessories, beauty and home products through an omnichannel retail model. Merchandise inventories stood at $2,913 million. Total current Assets were $4,019 million, while total assets reached $13,410 million.

Capital Allocation Plans

Its Capital allocation priorities include Business investment, a quarterly dividend, potential Debt reduction and share repurchases. The board declared a quarterly cash Dividend of $0.125 per share on August 18, 2026.