The retailer last year began a partnership with Amazon to sell the online retailer's smart home products and accept its returns. The company hasn't yet provided specific performance data for the venture.
Kohl's also announced a partnership with discount grocer Aldi to lease the vacant space left behind by its downsized stores. It plans more such partnerships down the road.
Unlike other department stores, Kohl's has benefited from having its stores located away from malls, where the number of shoppers is declining.
Meantime, Kohl's efforts to more efficiently order and stock the goods in its stores also continue to pay off. Two years ago, Kohl's launched a five-year plan to improve its inventory management, in aims of minimizing the costs of discounts and unbought goods.
"We exceeded the high end of our margin expectations through continued focus on inventory management," Gass said.
Jefferies analyst Randal Konik reiterated his buy on Kohl's after the earnings report, saying Kohl's pricing power is "better" and the business is running more efficiently. He also cited "powerful" cash flow and clean inventories for his stance.
Kohl's for the quarter reported net income of $75 million, or 45 cents a share, higher than the $66 million, or 39 cents a share, it reported a year ago.
Excluding $500 million in debt Kohl's paid down the past quarter, the company earned $107 million, or 64 cents a share, marking a 62 percent jump over the same quarter a year prior.
Sales rose 3.5 percent to $4.21 billion over the same quarter a year prior. That was higher than the $3.95 billion, analysts were expecting.
Kohl's raised its earnings forecast for the year, and now expects earnings of $5.05 to $5.50 per share, compared with previous expectations of $4.95 to $5.45 per share. Including the impact of debt payment, to earn between $4.86 and $5.31 per share a year ago.