Kohl's reported Q2 net income of $151 million, primarily driven by approximately $100 million in tariff refunds, which also led to a 305 basis point increase in gross margin to 43.0%. Despite a 1.2% decline in year-to-date net sales to $6.3 billion, the retailer raised its fiscal 2026 outlook. Kohl's now expects full-year comparable sales to range from a 1.5% decrease to flat, adjusted diluted earnings per share between $1.80 and $2.40, and adjusted operating margin between 3.5% and 4.0%. The company also restarted its share repurchase program, with up to $100 million in buybacks under its existing authorization.