Kohl's beats on 2Q profits as department store cuts inventory amid cautious consumer spending

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Kohl's beats on 2Q profits as department store cuts inventory amid cautious consumer spending
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Kohl’s reported on Wednesday that both profits and sales declined in the second quarter as the department store wrestles with shoppers’ cautious spending in a challenging economy.

NEW YORK — Kohl’s reported on Wednesday that both profits and sales declined in the second quarter as the department store chain wrestles with shoppers’ cautious spending in a challenging economy.

But the results beat Wall Street expectations as the retailer cut inventory and expenses. The department store chain also reaffirmed its annual guidance. Shares rose more than 2% in premarket trading. Kohl’s, based in Menomonee Falls, Wisconsin, is among the last group of retailers to report second-quarter results in an earnings season that has shown how still-high inflation, despite some easing, and higher interest rates are making shoppers cut back on discretionary items like clothing in order to afford their larger grocery bills.said it was forced to discount its spring goods to make room for fall and holiday merchandise in the face of customers’ cautious spending.

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