Kohl's Q2 Review: Tariff Refunds Fuel Buybacks

Seeking Profits 5.68K Followers Follow Summary Kohl’s remains a deep value play, with shares up 25% over the past year despite ongoing sales challenges and volatile trading. Adjusted for one-time tariff refunds, Q2 EPS and gross margins were flat, with same-store sales down 0.9% and inventory tightly managed. KSS’s focus on proprietary brands and expense control supports margins, while elevated leverage (3.6x) and a bloated store count remain concerns. Guidance reflects a one-time tariff windfall; I see normalized free cash flow at $375 million and fair value in the $21–$24 range. jetcityimage/iStock Editorial via Getty Images Shares of Kohl’s ( KSS ) have been a solid performer over the past year, gaining about 25%, though it has been a volatile ride. The department store has struggled for years with declining sales amid competition from e-commerce and affordability pressures on lower-income This article was written by Seeking Profits 5.68K Followers Follow Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.