Kohl's Cuts Costs to Address a Challenging Consumer Environment

Core Insights - Kohl's exceeded profit estimates for Q2 despite a decline in sales, attributed to cost-cutting measures [1] - The company raised its full-year earnings per share outlook while warning of a challenging consumer environment [1][3] - Kohl's shares have decreased nearly 33% in value this year, despite a slight increase on the day of the report [1][3] Financial Performance - Kohl's reported Q2 earnings per share (EPS) of $0.59, surpassing analyst expectations by $0.14 [2] - Revenue fell by 4.2% to $3.5 billion, with comparable store sales down 5.1%, both figures below expectations [2] - Selling, general, and administrative (SG&A) expenses decreased by 4.2% to $1.2 billion [2] Future Outlook - The company now anticipates a full-year revenue decline of 6%, revised from a previous forecast of a 4% decrease [3] - Kohl's raised its profit outlook for the year to a range of $1.75 to $2.25 per share, up from $1.25 to $1.85 [3] - Full-year comparable store sales are expected to decline by 5%, compared to an earlier estimate of a 3% decrease [3] Management Commentary - CEO Tom Kingsbury noted significant actions taken to reposition Kohl's for future growth, despite challenges in the consumer environment and core business [4] - He highlighted that shoppers are exhibiting more discretion in their spending, yet the company's commitment to its strategy remains strong [4]