Kohl's Corporation reported its financial results for the second quarter and six months ended August 3, 2024, revealing a decline in net sales and total revenue compared to the same periods in the previous year. Net sales for the three months ended August 3, 2024, were $3,525 million, down 4.2% from $3,678 million in the same quarter of 2023. For the six months, net sales decreased to $6,703 million from $7,033 million, representing a 4.7% decline. Total revenue for Q2 2024 was $3,732 million, a decrease from $3,895 million in Q2 2023, while year-to-date revenue fell from $7,466 million to $7,114 million.

Despite the revenue decline, Kohl's reported an increase in operating income for Q2 2024, which rose to $166 million from $163 million in Q2 2023. Net income for the quarter increased to $66 million, or $0.59 per diluted share, compared to $58 million, or $0.52 per diluted share, in the prior year. However, net income for the six months ended August 3, 2024, was $39 million, down from $72 million in the same period of 2023.

The company’s gross margin improved slightly, reaching 39.6% of net sales, an increase of 59 basis points year-over-year, attributed to effective inventory management and lower freight costs. Selling, general, and administrative (SG&A) expenses decreased by 4.2% to $1.2 billion in Q2 2024, reflecting reduced store expenses and fewer Sephora shop openings.

Kohl's current assets increased to $3,713 million as of August 3, 2024, from $3,410 million in February 2024, while total assets decreased to $14,180 million from $14,794 million year-over-year. The company’s total liabilities rose to $3,438 million, up from $3,470 million in the previous year. Cash and cash equivalents increased to $231 million, compared to $204 million in the same quarter of 2023.

Strategically, Kohl's is focused on enhancing customer experience and managing inventory and expenses. The company plans to invest approximately $500 million in 2024, which includes expanding its partnership with Sephora and opening new store formats. A quarterly cash dividend of $0.50 per share was declared on August 13, 2024, payable on September 25, 2024.

Kohl's remains in compliance with all covenants of its debt agreements and has no significant changes in contractual obligations or off-balance sheet arrangements. The company continues to navigate market challenges while aiming to deliver long-term shareholder value.