Aug 26 (Reuters) - Kohl's missed Wall Street estimates for second-quarter sales on Wednesday, as cautious consumer spending on discretionary items offset gains from the high-end department chain's turnaround push, sending its shares down about 5% before the bell.
The company, however, raised its annual profit forecast after benefiting from $150 million tariff refunds received during the reported quarter.
Kohl's also said it will resume its about $100 million share repurchase program this year.
U.S.
consumer sentiment deteriorated in August and retail sales fell for the first time in nine months in July, underscoring an increasingly "selective" shopping trend among middle- and lower-income households in the face of stubborn inflation, even as wealthier shoppers remain resilient.
This cautious behavior of consumers when spending on nice-to-have items, including apparel and home goods, has been weighing on businesses from high-end store owners such as Kohl's to off-price retailers like TJX.
Kohl's quarterly revenue fell 0.9% to $3.32 billion from a year ago, compared with analysts' estimates of about a 0.1% decline to $3.35 billion, according to data compiled by LSEG.
The company now expects fiscal 2026 adjusted earnings of $1.80 to $2.40 per share, compared with its prior forecast of $1.00 to $1.60.
(Reporting by Anuja Bharat Mistry and Shania S Thomas in Bengaluru; Editing by Shinjini Ganguli)
