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Half of Americans live paycheck to paycheck. Low-end retailer Kohl's (NYSE: KSS | KSS Price Prediction) announced good earnings.
Kohl's Corporation (KSS) Q2 2027 Earnings Call Transcript
Kohl's (KSS) stands out as a value opportunity amid a nervous, high-flying market. Recent Q2 results showed moderating sales declines and prompted a full-year outlook raise. KSS shares remain down ~15% year-to-date, presenting an attractive entry point.
KSS posts second-quarter adjusted EPS of $1.28, more than doubling year over year, as gross margin expands and fiscal 2026 earnings guidance is increased.
Kohl's sales continue to slip as its shoppers continue to face household budgetary pressures. The department store chain reported quarterly earnings Wednesday (Aug. 26) showing a 0.9% decrease in both net and comparable sales, marking the 18th straight quarter in which Kohl's has seen revenues decline.
Kohl's remains a deep value play, with shares up 25% over the past year despite ongoing sales challenges and volatile trading. Adjusted for one-time tariff refunds, Q2 EPS and gross margins were flat, with same-store sales down 0.9% and inventory tightly managed. KSS's focus on proprietary brands and expense control supports margins, while elevated leverage (3.6x) and a bloated store count remain concerns.