Kohl’s second-quarter earnings surprised Wall Street with adjusted earnings per share significantly beating expectations despite ongoing declines in sales. Interim CEO Michael Bender highlighted cost discipline and leaner inventory as factors cushioning profitability, even as revenues and comparable store sales fell. The retailer faces steep competition and a shrinking customer base since 2019. Analysts note tariff increases have contributed to margin protection but also caution over inventory management possibly hampering sales growth. Kohl’s recently underwent leadership upheaval including the firing of its CEO following conflict of interest allegations, adding to the challenges of its turnaround efforts.