The company posted adjusted profit of $1.76 a share, which beat FactSet analyst expectations of $1.64. Revenue for the second quarter totaled more than $4.57 billion; analysts estimated revenue of $4.27 billion.
Kohl's also increased its guidance for fiscal 2018, saying it now expects adjusted EPS of $5.15 to $5.55. Previously, it had expected adjusted earnings of $5.05 to $5.50 a share. Analysts estimate adjusted EPS of $5.39.
Same-store sales grew 3.1% in the second quarter, beating estimates of 2.6%.
"Kohl's posted a solid second quarter, benefiting from solid inventory management with inventories per store down approximately 8% and gross margins up 42 basis points," said Christina Boni, a Moody's vice president. "The major department stores that have performed well have continued to focus on speed to market and inventory efficiency, which are critical to improving the customer experience as well as profitability."
When asked by an analyst about how the partnership with Amazon.com Inc. (AMZN - Get Report) was going, CEO Michelle Gass responded, "So, we've been in this pilot now for about nine months ... for both parties, we're really pleased with the partnership ... and customer response." She also said that Amazon and Kohl's were planning on expanding the partnership to stores in Milwaukee.
"We feel really good about the customer experience that we've created," said Gass. She also noted that Kohl's was ready to see how Milwaukee customers responded to the partnership. With the expansion, Kohl's has more than 100 stores that offer free Amazon returns.
"This is a big deal for us and Amazon ... we want to make sure that we optimize and get it right," said Gass. "It's a frictionless experience. We're getting really great feedback from customers. You know, all elements have to work ... before any decisions are made."