Kohl's recorded lower profit and sales in the second quarter, but raised its outlook thanks to a boost from tariff refunds.

The department-store retailer on Wednesday posted a profit of $151 million, or $1.28 a share, compared with $153 million, or $1.35 a share, a year earlier. Net sales fell less than 1% to $3.32 billion, in line with analysts' expectations. Same-store sales fell 0.9%, while analysts were projecting a 0.6% increase.

Kohl's said it received $150 million in tariff refunds during the quarter, about $100 million of which flowed through to gross margin. Reflecting the boost from tariff refunds, Kohl's now expects adjusted earnings per share to be $1.80 to $2.40 for the full year, up from a prior range of $1 to $1.60.

Kohl's also narrowed its sales guidance, now expecting revenue to be flat to down 1.5%, compared with the flat to 2% decline it previously projected.