Kohl's shares surge on confident outlook, Q2 beat

(Sharecast News) - Shares in Kohl's surged by nearly a quarter on Wednesday after the American department store chain beat forecasts with its second-quarter results and guided to a slightly lower-than-expected sales decline this year. The company, which is in the midst of a years-long turnaround to reinvigorate its product line-up and cut costs, said full-year net sales would likely decrease by 5-6% this year, compared with an earlier forecast of 5-7%.

Earnings per share are expected to be 50-80 cents for the year, compared with an earlier 10-60 cents range.

Net sales in the second quarter were down 5.1% at $3.35bn, beating the $3.32bn estimate, with comparable sales down 4.2%.

"Kohl's second quarter performance is a testament to the progress we are making against our 2025 initiatives," said interim chief executive Michael Bender.

"This resulted in sales performance that came in ahead of our expectations. While it is clear that these initiatives are beginning to resonate with our customers, our team remains focused on delivering progressive improvement throughout the remainder of the year against a challenging economic backdrop."

By 1014 in New York, the stock was up 23% at $16.07.