Kohl’s posted another weak set of results in its latest quarter, but the numbers indicated early signs of an improvement.

The retailer’s net sales were $3.3 billion in the second quarter ended August 2, down 0.9 per cent on both a reported and comparable basis.

GlobalData MD Neil Saunders noted that this is the best comparable sales performance since Q3 of 2021, and that the company is at least showing some signs of stabilization. 

However, the business is yet to be in full recovery, as sales remained in decline for 18 consecutive quarters.

“This is especially so as this quarter is one in which consumer spending, particularly on apparel, was robust,” Saunders said. “From our data, Kohl’s is still losing market share across a lot of its major categories.”

According to the analyst, management has tried numerous initiatives to improve performance, such as making own brands more prominent in stores, strengthening value credentials, and working more closely with national brands to improve presentation.

Management has also worked hard to reduce debt and strengthen the company’s cash position, he added.

“In short, Kohl’s has made progress. But longer-term success requires the relevance question of ‘why Kohl’s’ to be addressed once and for all,” Saunders said.

For the full year, the company expects net sales and comparable sales to be flat to down 1.5 per cent.