Kohl's Corp. shares surged after it offered a more optimistic full-year sales outlook, the latest indication that consumer spending hasn't yet run out of steam.

The company now expects comparable sales to fall no more than 5% this year, an improvement from its prior forecast that sales would decline as much as 6%. The company also reported second-quarter sales that were better than Wall Street estimates.

Retailers continue to point to sales momentum from U.S. shoppers shrugging off worries about tariffs and inflation. Earlier this month, TJ Maxx owner TJX Cos. and Ross Stores Inc. indicated that Americans are willing to spend but are looking for cheaper options.

Abercrombie & Fitch Co. also upped its sales forecast on strong back-to-school demand. Foot Locker Inc., which is being acquir

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