(Reuters) – Kohl’s raised its full-year profit forecast as tight cost management and lower inventories helped mitigate the impact of muted demand for clothing and accessories.
On Wall Street, the distributor’s shares were up 6.33% at 1:58 p.m. GMT.
Kohl’s now expects full-year diluted earnings per share (EPS) of $1.75 to $2.25, compared with a previous forecast of $1.25 to $1.85.
Excluding special items, the company earned 59 cents per share in the second quarter, compared with expectations of 45 cents.
On Tuesday, rival Nordstrom beat quarterly profit expectations.
Kohl’s also benefited from strong demand from beauty retailer Sephora as customers continued to buy affordable cosmetics and skincare.
The company, however, lowered its annual net sales target after posting a bigger-than-expected drop in sales in the second quarter.
The company’s comparable store sales fell 5.1%, while analysts had expected a 2.19% decline, according to LSEG data.
The company now expects its annual net sales to fall by 4 to 6 percent, compared with a previous forecast of a 2 to 4 percent decline.
(Reporting Juveria Tabassum, Elena Smirnova, editing by Kate Entringer)
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