Proactive Investors - Kohl's Corp (NYSE:KSS) exceeded second-quarter profit expectations, reflecting the positive impact of its efforts to streamline inventory and cut costs.
The company reported adjusted earnings per share of $0.52, well above the analyst consensus of $0.23.
This was accompanied by a 14% reduction in inventory, demonstrating progress in clearing excess merchandise.
Despite these positive results, comparable sales dipped 5%, missing forecasts. Nevertheless, the company's gross margin remained stable at 39%, as efforts to clear excess stock paid off.
Kohl's also unveiled plans to add 200 Sephora at Kohl's shops, part of its strategy to optimize product offerings.
CEO Tom Kingsbury emphasized that many strategic efforts are still in their early stages, with expectations of incremental contributions in the second half of the year and beyond.
The company's performance aligns with industry trends, as retailers focus on efficient inventory management and product mix heading into the crucial holiday season.
Kohl's maintained its full-year guidance, expecting sales to decline by up to 4%, in line with the broader cautious outlook for the retail sector.
Shares of retailer had gained about 3% following the positive earnings report but settled around 0.3% higher just before the opening bell on Wednesday.