Kohl's said its shoppers are feeling squeezed by high gas prices, making them even more cautious about non-essential spending.

The department-store chain recorded lower sales and profit in the second quarter. Low-and middle-income consumers in particular are pulling back on spending, a trend Kohl's executives said is likely to continue through the rest of the year.

"Our customers are experiencing persistent financial pressures from inflation in their everyday expenses," Chief Executive Michael Bender told analysts Wednesday.

Shares were down ahead of the opening bell on Wednesday, but rebounded in morning trading.

Profit in the second quarter fell to $151 million, or $1.28 a share, compared with $153 million, or $1.35 a share, a year earlier.

Net sales slipped 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.

Women's apparel sales moderated in the quarter, falling 1.5%. Bender said the company didn't have enough inventory, which weighed on the core business. Sephora at Kohl's sales also fell 4%.

Traffic did improve in the quarter, which executives attributed to stronger performance from Kohl's credit cardholders. Sales from cardholders turned positive, increasing by 1%, thanks to targeted re-engagement strategies, such as expanding coupons.

Kohl's said customers are hunting for low prices due to broader financial pressures. The company plans to use some of the $150 million in tariff refunds it received to address that trend, Bender said. About $100 million of the refund flowed through to gross margins.

Earlier this month, other big-box retailers including Walmart and Target said they would use tariff refunds to lower prices for consumers. Walmart also flagged weakness among low-income shoppers and posted its smallest quarterly sales increase in six years.

Kohl's intends to bring down opening price points to appeal to lower-income shoppers. It is also investing in media to improve customer engagement, as well as increase employee payroll, executives said

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 net sales and same-store sales to be flat to down 1.5%, compared with the flat to 2% decline it previously projected.