MENOMONEE FALLS — Total revenue for the quarter reached $3.52 billion. The company received approximately $150 million in tariff refunds during the second quarter, which contributed to the financial results. Kohl's updated its full-year comparable sales guidance to a range of down 1.5% to flat.

Gross margin improved by 305 basis points in the second quarter of fiscal 2026. Management attributed this improvement to stronger proprietary brand mix and inventory discipline. Inventory declined approximately 3% from a year earlier in the second quarter.

Michael Bender is the Chief Executive Officer of Kohl's. He served as President and Chief Executive Officer of Eyemart Express from January 2018 to April 2022, and previously as President from September 2017 to January 2018. Bender held the position of Chief Operating Officer of Global eCommerce at Walmart Inc. from 2014 to 2017.

He was appointed Board Chair of Kohl’s from May 2024 to May 2025 before becoming interim CEO in May 2025. Bender also served as a Director of Ryman Hospitality Properties, Inc. (NYSE: RHP) prior to his appointment as interim CEO of Kohl’s.

Jill Timm is the Chief Financial Officer of Kohl's. She has more than 25 years of finance and retail experience, having joined Kohl’s in 1999 and holding progressive leadership roles across several areas of finance.

Digital sales increased 2.8% in the second quarter, while store sales declined 2%. Sephora at Kohl's sales declined 4% in the second quarter. Proprietary-brand sales increased 3%, and home category sales increased 1%.

Juniors category sales increased 10%. Marketplace gross merchandise value grew 88% year over year in the second quarter.

The company ended the second quarter with $821 million in cash and cash equivalents. Kohl's had no borrowings under its asset-based lending facility at the end of the second quarter. The retailer plans to repurchase approximately $100 million of its stock in 2026.

Kohl's expects full-year operating cash flow to be between $950 million and $1 billion. Full-year capital expenditures are expected to be between $350 million and $400 million. The company expects full-year adjusted operating margin to be between 3.5% and 4%.

The retailer acknowledged an internal processing error caused duplicate charges and unrequested returns for online transactions made between July 24 and August 5. Reversals for the erroneous charges are underway and affected shoppers will see funds returned in one to three days. "We’re aware that some customers may be seeing an unexpected duplicate charge or return related to online transactions made between July 24 and August 5," a Kohl's Representative said. He added, "We sincerely apologize for the inconvenience."

Why It Matters

Kohl's raised its full-year adjusted earnings per share guidance to a range of $1.80 to $2.40 while updating its full-year comparable sales guidance to a range of down 1.5% to flat. The company reported net income of $151 million and a 0.9% decline in comparable sales for the second quarter of fiscal 2026. The gross margin improvement of 305 basis points was aided by stronger proprietary brand mix and inventory discipline.

The retailer plans to repurchase approximately $100 million of its stock in 2026 and expects full-year operating cash flow to be between $950 million and $1 billion. Leadership changes include the appointment of Elliott Rodgers as chief operating officer and Arian Parisi as chief customer officer. Michael Bender serves as Chief Executive Officer, and Jill Timm serves as Chief Financial Officer.

Timeline

Kohl's declared a quarterly dividend of $0.125 per share on August 18, payable September 23 to shareholders of record as of September 9. On August 26, Kohl's reported net income of $151 million, or $1.28 per diluted share, for the second quarter of fiscal 2026. Also on August 26, Michael Bender is the Chief Executive Officer of Kohl's, and Jill Timm is the Chief Financial Officer of Kohl's.

On August 26, Kohl's comparable sales declined 0.9% in the second quarter of fiscal 2026, and the company reported total revenue of $3.52 billion for the second quarter of fiscal 2026. A Kohl's Representative stated, "We’re aware that some customers may be seeing an unexpected duplicate charge or return related to online transactions made between July 24 and August 5."

What's New

Jill Timm has more than 25 years of finance and retail experience, having joined Kohl’s in 1999 and holding progressive leadership roles across several areas of finance. Michael Bender served as a Director of Ryman Hospitality Properties, Inc. (NYSE: RHP) prior to his appointment as interim CEO of Kohl’s. Further details confirmed that Kohl's reported total revenue of $3.52 billion for the second quarter of fiscal 2026. A Kohl's Representative stated, "We’re aware that some customers may be seeing an unexpected duplicate charge or return related to online transactions made between July 24 and August 5," and added, "We sincerely apologize for the inconvenience."