Kohl’s Corporation (NYSE: KSS) saw its shares trading higher in the premarket session on Wednesday. The company reported second-quarter adjusted earnings per share of 56 cents, surpassing the analyst consensus of 29 cents. Quarterly sales of $3.546 billion exceeded expectations, with comparable sales down 4.2%. The company completed its Sephora at Kohl’s full chain rollout in Spring 2025, aiming for a $2 billion beauty business.

Kohl’s reported a $129 million gain from a credit card interchange fee lawsuit settlement. Gross margin as a percentage of net sales increased to 39.9%. Adjusted operating income was $161 million, with an adjusted operating margin of 4.6%. The company’s interim CEO, Michael Bender, highlighted solid second-quarter earnings due to expanded gross margins and reduced expenses.

Exiting the quarter, Kohl’s had cash and equivalents totaling $174 million. Long-term debt increased by $347 million, primarily from the issuance of senior secured notes. The company announced adjusted earnings per share guidance for fiscal year 2025 between 50 cents and 80 cents, raising sales guidance as well. Short interest in Kohl’s stock was at 43.50% as of August 26, 2025, with shares trading 23.08% higher premarket at $16.05 on Wednesday.

Read more at Yahoo Finance: Kohl’s Raises Outlook After Sephora Rollout