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Shares of Kohl’s ( KSS ) are moving higher in early trading, rising as much as 7% after the company beat Wall Street earnings expectations by $0.15 a share and raised its profit outlook.

In Q2, the retailer doubled its inventory management and spending, resulting in a 9% decline in inventory year-over-year. It plans to remain “committed to increasing inventory turns and managing inventory down in the single digits,” CEO Tom Kingsbury told investors on a call.

All this in an effort to be “competitive during a very promotional holiday season,” said CFO Jill Timm.

Kohl’s expects to end 2024 with an operating margin between 3.4% and 3.8%, along with adjusted earnings per share in the range of $1.75 to $2.25.

The company cut its full-year sales growth guidance as a “difficult consumer environment” persists and Kohl’s customers feel the “burden” of a higher cost of living, prompting them to put less in the cart.

Same-store sales are now expected to fall between 3% and 5% for fiscal 2024, more than the previously expected year-over-year decline of 1% to 3%.

Kohl’s Sephora continues to be a bright spot for the company. The company’s total sales rose nearly 45% in Q2 year-over-year, with sales growth in the high-teens.

In 2024, the company added a total of 140 locations, surpassing Kohl’s’ 1,000 Sephora stores.

“We’ve seen a good crossover in terms of customers shopping at Sephora,” Kingsbury said, adding that “about 35 percent of Sephora carts have another product from Kohl’s in their cart.” As the beauty shop attracts younger shoppers, it plans to move the junior section to the front of the store.