Kohl's (NYSE: KSS) today announced second-quarter adjusted diluted earnings per share of $1.28, significantly exceeding the market's expectation of $0.57, with revenue reaching $3.52 billion, also higher than the anticipated $3.4 billion. However, investors reacted to this earnings report with a stock price decline, as the company disclosed a $150 million tariff refund this quarter, with $100 million of it recognized in gross margin. Excluding this impact, comparable sales still decreased by 0.9%. The company raised its full-year fiscal 2026 guidance, now expecting net sales and comparable sales to decline by 1.5% to flat, an adjusted operating margin of 3.5% to 4%, and adjusted diluted earnings per share of $1.80 to $2.40.