Kohl's lifts annual profit target as turnaround gains traction

(Reuters) -Kohl's (KSS) raised its annual profit forecast on Wednesday as the U.S. department store chain's turnaround reins in costs amid efforts to bring back customers during the key holiday shopping season, sending its shares up 15% in premarket trading.

The company earlier this year closed an e-fulfillment center in Ohio and is downsizing its in-store jewelry business, as well as trimming inventory of its own brands.

Kohl's expects annual earnings per share of 50 cents to 80 cents, compared with its earlier wide range of 10 cents to 60 cents.

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"We were able to expand our gross margins, reduce our inventory, and lower our expenses, leading to solid second-quarter earnings," said interim-CEO Michael Bender.

Kohl's second-quarter adjusted earnings per share of 56 cents handily beat estimates of 29 cents, according to data compiled by LSEG.

For the quarter ended August 2, comparable sales fell 4.2%, smaller than estimates of a 5% decline.

(Reporting by Juveria Tabassum and Sanskriti Shekhar; Editing by Sriraj Kalluvila) Sign up for Yahoo Finance Daily Movers

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