Kohl’s posted stronger-than-expected fiscal second-quarter results, helped by cost controls, inventory reductions and a legal settlement. Revenue slipped 5.1% from a year earlier to $3.35 billion but still beat forecasts, while gross margin widened to 39.9%. Net income more than doubled to $153 million, translating to GAAP earnings of $1.35 a share. On an adjusted basis, EPS came in at $0.56, almost twice Wall Street’s estimate. Comparable sales fell 4.2%, a smaller drop than analysts projected, as the department-store chain refreshed private-label assortments and broadened discounts on branded goods. Selling, general and administrative expenses declined 4.1%, underscoring management’s push to streamline operations and close underperforming stores. Interim Chief Executive Officer Michael Bender said the company "expanded our gross margins, reduced inventory, and lowered expenses," marking progress on its 2025 turnaround agenda. Buoyed by the quarterly beat, Kohl’s raised its full-year guidance. It now expects adjusted earnings of $0.50 to $0.80 a share, versus a prior range of $0.10 to $0.60, and narrowed its projected sales decline to 5%–6%. Operating margin is seen at 2.5%–2.7%, up from 2.2%–2.6%. Investors welcomed the move; the stock surged more than 20% in heavy trading, erasing part of last year’s slide and reflecting high short-interest covering alongside renewed confidence in the retailer’s turnaround.