The retailer's shares rose as much as 2.5 percent after it also raised its full-year profit forecast, citing its first-quarter results.
Kohl's typically sells lower-priced items than other department stores and often uses discounts to lure shoppers.
Its higher sales stood out among peers, which have all faced a tough time in getting consumers to spend as they contend with the recession, job losses and tight access to credit.
The pain has extended to even upscale retailers. Nordstrom Inc
Where they do spend, consumers have sought deep discounts -- a trend that is likely to persist and help Kohl's, said Liz Dunn, a Thomas Weisel analyst.
We've all learned that many consumers were spending much more money than they could afford, she said. A more value-conscious consumer is likely to persist for some time so Kohl's will continue to be well-positioned from that standpoint.
Chief Executive Kevin Mansell said during a conference call that the company will continue to highlight the many ways the consumer can save while shopping at Kohl's.
Meanwhile, the world's largest retailer, Wal-Mart Stores Inc
Kohl's net profit fell to $137 million or 45 cents per share, for the first quarter ended May 2, from $153 million, or 49 cents per share, a year earlier.
The profit beat analysts' average expectation of 44 cents per share by a penny, according to Reuters Estimates.
Sales rose about 0.4 percent to $3.64 billion.
Kohl's said it managed its inventory closely, leading it to have less discounted merchandise in stores.
The company still expects to open 56 stores and remodel about 51 stores this fiscal year. A majority of the new stores are former Mervyns locations, which Kohl's acquired after Mervyns went bankrupt last year.
Retailers are using different tactics they hope will keep shoppers coming back despite the downturn. Kohl's is selling exclusive brands from designers and celebrities, such as Dana Buchman and Lauren Conrad, while J.C. Penney
Macy's, meanwhile, is tailoring its assortment to fit local trends.
For the second quarter, Kohl's expects to earn 56 cents to 64 cents per share, in line with analysts' expectation for a profit of 62 cents per share. It forecast second-quarter sales to be down 1 percent to 4 percent.
It also raised its full-year per-share profit forecast to $2.19 to $2.42, based on its first-quarter results. It had earlier expected $2.00 to $2.30 per share. Analysts expect $2.55 a share.
Kohl's shares were up 1.2 percent after rising as high as $42.98 on the New York Stock Exchange.
(Reporting by Aarthi Sivaraman; Editing by Lisa Von Ahn and Gerald E. McCormick)