UPDATE: Kohl's Posts Upbeat Q2 Earnings, Shares Rise

Shares of Kohl's

surged more than 3% in pre-market trading after the company reported better-than-expected fiscal second-quarter earnings. However, the company's sales missed analysts' estimates. The Menomonee Falls, Wisconsin-based company posted a quarterly profit of $232 million, or $1.13 per share, versus a year-ago profit of $231 million, or $1.04 per share. Its revenue dropped 1.1% to $4.24 billion. However, analysts were projecting earnings of $1.07 per share on revenue of $4.28 billion. Kohl's comparable-store sales dropped 1.3% in the quarter. Kohl's gross margin shrank to 39% versus 39.1%, while operating expenses declined 1.8% to $1.2 billion. Kohl's board declared a quarterly cash dividend of $0.39 per share. The company ended the quarter with 1,160 stores, versus 1,155 stores in the year-ago period. During the quarter, Kohl's opened 4 new store locations, relocated 1 existing store and permanently closed 1 store. Kevin Mansell, Kohl's chairman, president and chief executive officer, said, “We are pleased with the improvement we saw in sales as the quarter progressed. The improvement was the most dramatic in the month of July where we achieved a positive comp.” Kohl's shares gained 3.43% to $57.00 in pre-market trading.