10:19 AM EDT, 08/27/2025 (MT Newswires) -- Kohl's (KSS) raised its full-year earnings outlook on Wednesday as the department store chain recorded fiscal second-quarter results above market estimates.

Adjusted earnings are now set to come in between $0.50 and $0.80 per share for fiscal 2025, up from the company's prior guidance of $0.10 to $0.60. The current consensus on FactSet is for non-GAAP EPS of $0.44. The stock jumped 24% in Wednesday trade.

Sales are pegged to decrease by 5% to 6% for the ongoing fiscal year, compared with the previous forecast for a decline of 5% to 7%. Comparable sales are projected to move down by 4% to 5% versus the prior outlook for a 4% to 6% fall.

Kohl's is taking a "prudent approach" to its fiscal 2025 outlook for the remainder of the year, with its core customers "becoming increasingly selective with their spending," amid macroeconomic uncertainties and challenges related to global trade policies, Chief Financial Officer Jill Timm said during an earnings call, according to a FactSet transcript.

The company has taken a number of initiatives to strengthen its business, with some of them beginning to "show early signs of positive impact," according to Timm. Based on its ongoing mitigation efforts, the company believes it's well-positioned to meet its full-year guidance, the CFO added.

Kohl's posted adjusted EPS of $0.56 for the quarter ended Aug. 2, down from $0.59 the year before, but exceeding the Street's view for $0.30. Sales retreated 5.1% to $3.35 billion, but surpassed six FactSet-polled analysts' estimate for $3.32 billion. Comparable sales slid 4.2%, better than the 5.1% decline modeled by five analysts.

"Kohl's second-quarter performance is a testament to the progress we are making against our 2025 initiatives," interim Chief Executive Michael Bender said in a statement. "This resulted in sales performance that came in ahead of our expectations."

The company managed its business with "great discipline," expanded gross margins, reduced inventory and lowered its expenses, Bender added. He was named as interim CEO in May after the group's board removed Ashley Buchanan from the top role due to violations of the conflict of interest policy.

Gross margin as a percentage of sales inclined by 28 basis points to 39.9%, while selling, general and administrative expenses fell to nearly $1.2 billion from $1.25 billion in the prior-year quarter, according to the company. Inventory decreased 5% on a yearly basis to $3 billion.

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