MENOMONEE FALLS, Wis. (AP) — Kohl’s Corp., which operates several departments stores in the Dayton area, said Thursday that its second-quarter net income dropped 20 percent on disappointing sales and cut its full-year earnings prediction. Its shares fell 2 percent on premarket trading.

For the quarter ended July 28, the Menomonee Falls, Wis.-based department store chain reported net income of $240 million, or $1 per share, down from $299 million, or $1.08 per share, in the same quarter last year.

Revenue fell 1 percent to $4.21 billion from $4.25 billion. Revenue at stores open at least a year decreased 2.7 percent. The metric is a key measure of a retailer’s health, because it excludes revenue from stores that opened or closed during the year.

The earnings beat Wall Street expectations, while the revenue was roughly in line. Analysts, on average, expected a profit of 96 cents per share on $4.22 billion in revenue, according to a FactSet poll.

Kevin Mansell, the company’s chairman, president and CEO, called the quarter’s sales performance “disappointing,” but added that its profitability was better than expected.

Based on its results so far this year, the company cut its full-year profit prediction to a range of $4.50 to $4.65 per share from its previous prediction of $4.75 per share. Analysts polled by FactSet expect earnings of $4.65 per share.

Kohl’s also projected a third-quarter profit of 83 cents to 89 cents per share on sales growth of between 1 percent and 3 percent. Based on the company’s year-ago sales of $4.38 billion, the guidance implies $4.42 billion to $4.51 billion in sales for the current quarter.

Analysts expect a third-quarter profit of 88 cents per share on $4.5 billion in revenue.

Kohl’s shares fell $1.06, or 2 percent, to $51 in premarket trading.