Shares of department store operators, which are struggling with stiff competition from online and off-price retailers, have been under pressure in the past year.
Hot weather in July, however, increased traffic in malls, helping department stores clear inventory from the previous quarter.
Sales at Kohl’s stores open at least a year fell 1.8%, down for the second straight quarter. Analysts polled by research firm Consensus Metrix had on average forecast a 1.7% drop.
Kohl’s net income rose to $140 million, or 77 cents per share, in the second quarter ended July 30, from $130 million, or 66 cents per share, a year earlier.
Excluding items, the company earned $1.22 per share.
Net sales fell 2% to $4.18 billion.
Analysts on average had expected earnings of $1.03 per share and revenue of $4.16 billion, according to Thomson Reuters I/B/E/S.
The company said it now expects adjusted earnings of 3.80-$4.00 per share for the year ending January 2017, down from its previous forecast of $4.05 to $4.25.