KSS Kohls Corporation

By Micah Maidenberg and Allison Prang 

Kohl's Corp. posted improved sales results during the second quarter amid a wave of robust consumer spending that has buoyed many retailers.

The company said its second-quarter profit rose 40% to $292 million, or $1.76 a share, from $208 million, or $1.24 a share, a year earlier. Analysts surveyed by FactSet were expecting the company to report earnings $1.64 a share on an adjusted basis.

Net sales rose 3.9% to $4.31 billion, more than the $4.27 billion expected by analysts.

The company said adjusted comparable sales, which account for an extra week in last year's retail calendar, rose 3.1% during the quarter, or 4.3% on a fiscal basis. A year ago, same-store sales fell 0.4%. Analysts were predicting a 2.6% increase in same-store sales for the second quarter.

Kohl's Chief Executive Michelle Gass said in prepared remarks that the company's "men's and women's apparel businesses led the company, followed closely by footwear."

Americans are spending more on everything from jeans to handbags to home furnishings as rising wages and lower unemployment boost disposable income.

The spending spree is helping retailers recover after several difficult years. Last week, Walmart Inc. said its quarterly sales rose at the fastest pace in more than a decade. And other retailers, including Nordstrom Inc. and Home Depot Inc., also reported strong results.

The company also raised its guidance for the rest of the year. For 2018, Kohl's is forecasting earnings of between $4.96 a share and $5.36 a share. It increased its expectations for its earnings excluding the loss on extinguishment of debt and now expects those to be between $5.15 and $5.55 a share for the year.

Share of Kohl's fell 2.8% in premarket trading Tuesday. The stock is up more than 45% so far this year.

Write to Micah Maidenberg at micah.maidenberg@wsj.com and Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

August 21, 2018 09:03 ET (13:03 GMT)

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