Kohl’s (KSS) Stock Surges on Q2 Earnings Beat and Dividend Declaration

MENOMONEE FALLS, Wis., Aug. 27, 2025 - Shares of Kohl’s Corporation (NYSE: KSS) rallied sharply Wednesday following the release of its fiscal second-quarter results and a fresh dividend declaration.

Kohl’s reported adjusted earnings per share of $0.56 for the quarter ended Aug. 2, 2025, topping analysts’ consensus by 88.6%. Revenue declined 5.1% year-over-year to $3.3 billion, and comparable sales were down 4.2% on a challenging retail backdrop. Despite the revenue headwinds, gross margin expanded by 28 basis points to 39.9% and SG&A expenses fell 4.1% to $1.199 billion, reflecting the company’s ongoing cost-reduction initiatives.

Investors responded positively, driving Kohl’s stock up 14.11% to $14.88 in pre-market trading, following Tuesday’s close of $13.04. By market open, shares had jumped more than 15%, extending gains after the retailer beat both earnings and revenue expectations and raised its full-year profitability outlook.

In addition to the strong quarterly performance, Kohl’s declared a quarterly dividend of $0.125 per share, signaling its commitment to shareholder returns amid broader financial challenges. The dividend announcement fueled additional buying interest, with pre-market trading showing a 12.65% uptick in the stock.

Interim CEO Michael Bender remarked, “Our second quarter performance is a testament to the progress we are making against our 2025 initiatives. We’ve improved margins, reduced inventory, and disciplined expenses, positioning Kohl’s for continued improvement despite a tough environment”.

Looking ahead, Kohl’s raised its full-year 2025 EPS guidance, reflecting confidence in its strategic roadmap and operational momentum. The company will host an earnings conference call at 9:00 a.m. ET today to discuss results with investors and analysts.