MILWAUKEE _ Shares in Kohl's Corp. shot up more than 16 percent in trading Thursday after the nationwide retailer posted better-than-expected results for the second quarter.
The warm reception from investors came despite declines in overall revenue and same-store sales for the department store chain.
The firm, headquartered in suburban Milwaukee, netted $140 million in the three months that ended July 30, up from $130 million a year ago. Excluding one-time costs, Kohl's earned $221 million, or $1.22 a share, compared with $211 million, or $1.07 a share in the comparable period a year ago.
Analysts, on average, had expected Kohl's to earn $1.03 a share. Even the most optimistic projected per-share earnings well below Kohl's actual performance.
But while the retailer beat Wall Street expectations, its sales woes continued. Overall revenue totaled $4.18 billion, down from $4.27 billion in the second quarter of 2015. Sales at stores open at least a year were off by 1.8 percent.
"Our sales improved over our first quarter results, but were below our expectations," CEO Kevin Mansell said in a statement.
Kohl's and other department store companies have struggled amid the growth of online-only retail, consumer migration to off-price chains such as TJ Maxx, and what is widely cited as a diversion of spending away from clothing in favor of electronics and experiences.
Kohl's operates 1,150 Kohl's stores in 49 states and 12 Fila outlets.
