0000885639-14-000026.txt : 20141113 0000885639-14-000026.hdr.sgml : 20141113 20141113080730 ACCESSION NUMBER: 0000885639-14-000026 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20141113 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20141113 DATE AS OF CHANGE: 20141113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KOHLS Corp CENTRAL INDEX KEY: 0000885639 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DEPARTMENT STORES [5311] IRS NUMBER: 391630919 STATE OF INCORPORATION: WI FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11084 FILM NUMBER: 141216350 BUSINESS ADDRESS: STREET 1: N56 W17000 RIDGEWOOD DR CITY: MENOMONEE FALLS STATE: WI ZIP: 53051 BUSINESS PHONE: 4147835800 MAIL ADDRESS: STREET 1: N54 W13600 WOODALE DR CITY: MENOMONEE FALLS STATE: WI ZIP: 53051 FORMER COMPANY: FORMER CONFORMED NAME: KOHLS CORPORATION DATE OF NAME CHANGE: 19930328 8-K 1 a8k-q32014earningsrelease.htm 8-K 8K - Q3 2014 Earnings Release




UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT



Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  November 13, 2014

 
 
 
      Wisconsin      
  001-11084   
      39-1630919      
(State or other jurisdiction
 of incorporation)
(Commission
 File Number)
(IRS Employer
 Identification No.)

         N56 W17000 Ridgewood Drive
         Menomonee Falls, Wisconsin             
 
53051
(Address of principal executive offices)
 
(Zip Code)

Registrant's telephone number, including area code:  (262) 703-7000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Item 2.02.  Results of Operations and Financial Condition.

On November 13, 2014, Kohl's Corporation issued a press release reporting its earnings for the third quarter ended November 1, 2014.  A copy of the press release is attached as Exhibit 99.1 and incorporated by reference herein.

The information in this Item 2.02, including the exhibit attached hereto, is furnished solely pursuant to Item 2.02 of Form 8-K.  Consequently, such information is not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.  Further, the information in this Item 2.02, including the exhibit, shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933.

Item 7.01.  Regulation FD Disclosure.

See Item 2.02.

Item 8.01.  Other Events.

On November 12, 2014 the Kohl's Board of Directors declared a quarterly dividend of $0.39 per common share.  The dividend will be paid on December 24, 2014 to all shareholders of record at the close of business on December 10, 2014.

Cautionary Statement Regarding Forward-Looking Information

This current report on Form 8-K contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as "believes," "expects," "may," "will," "should," "anticipates," "plans," or similar expressions to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause the Company's actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company's Annual Report on Form 10-K, which is expressly incorporated herein by reference, and other factors as may periodically be described in the Company's filings with the SEC.




Item 9.01.  Financial Statements and Exhibits.

(d) Exhibits
 
 
 
 
Exhibit No.
Description
 
 
 
 
99.1
Press Release dated November 13, 2014




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
Dated:  November 13, 2014
KOHL'S CORPORATION


 
 
By:
/s/ Richard D. Schepp
 
 
 
 
Richard D. Schepp
 
 
 
 
Senior Executive Vice President,
 
 
 
 
General Counsel and Secretary
 





EXHIBIT INDEX

 
 
Exhibit No.
Description
 
 
99.1
Press Release dated November 13, 2014



 EX-99.1 2 q32014earningsrelease.htm PRESS RELEASE DATED NOVEMBER 13, 2014 Q3 2014 Earnings Release


Kohl's Corporation Reports Third Quarter Financial Results

MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--November 13, 2014-- Kohl’s Corporation (NYSE:KSS). Kohl’s Corporation today reported results for the quarter and year-to-date period ended November 1, 2014.

 
Quarter
 
Year to Date
($ in millions)
2014
 
2013
 
Change
 
2014
 
2013
 
Change
Sales
$
4,374

 
$
4,444

 
(1.6)%
 
$
12,686

 
$
12,932

 
(1.9)%
Comparable store sales
(1.8
)%
 
(1.6
)%
 
-
 
(2.2
)%
 
(0.9
)%
 
-
Net income
$
142

 
$
177

 
(20)%
 
$
498

 
$
555

 
(10)%
Diluted earnings per share
$
0.70

 
$
0.81

 
(14)%
 
$
2.43

 
$
2.51

 
(3)%

Dividend
On November 12, 2014, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.39 per share. The dividend is payable December 24, 2014 to shareholders of record at the close of business on December 10, 2014.

Store Update
Kohl’s ended the quarter with 1,163 stores in 49 states, compared with 1,158 stores at the same time last year. During the quarter, the Company opened stores in three new locations and reopened one store which had closed in the first quarter for a complete re-build.
 
Third Quarter 2014 Earnings Conference Call
Kohl's will host its quarterly earnings conference call at 8:30 am ET on November 13, 2014. The phone number for the conference call is (800) 230-1059. Replays of the call will be available for 30 days by dialing (800) 475-6701.  The conference ID for both the live call and the replay is 338567. The conference call and replays are also accessible via the Company's web site at http://www.kohlscorporation.com/InvestorRelations/event-calendar.htm.

Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Kohl's intends forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “anticipates,” “plans,” or similar expressions to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause Kohl's actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, those described in Item 1A in Kohl's Annual Report on Form 10-K, which is expressly incorporated herein by reference, and other factors as may periodically be described in Kohl's filings with the SEC.





About Kohl's
Kohl’s (NYSE: KSS) is a leading specialty department store with 1,163 stores in 49 states. With a commitment to inspiring and empowering families to lead fulfilled lives, the company offers amazing national and exclusive brands, incredible savings and inspiring shopping experiences in-store, online at Kohls.com and via mobile devices. Committed to its communities, Kohl’s has raised more than $257 million for children’s initiatives nationwide through its Kohl’s Cares® cause merchandise program, which operates under Kohl's Cares, LLC, a wholly-owned subsidiary of Kohl's Department Stores, Inc.  For additional information about Kohl’s philanthropic and environmental initiatives, visit www.Kohls.com/Cares. For a list of store locations and information, or for the added convenience of shopping online, visit www.Kohls.com.

Connect with Kohl’s: 
Facebook (http://www.facebook.com/Kohls)
Twitter (http://twitter.com/Kohls)
Google+ (http://plus.google.com/+Kohls)
Pinterest (http://pinterest.com/Kohls)
Instagram (http://instagram.com/Kohls)

Contacts
Investor Relations:
Wes McDonald, Senior Executive Vice President and Chief Financial Officer, (262) 703-1893

Media:
Bevin Bailis, SVP, PR and Communications, (262) 703-1464






KOHL'S CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Millions, except per share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
November 1,
2014
 
November 2,
2013
 
November 1,
2014
 
November 2, 2013
Net sales
$
4,374

 
$
4,444

 
$
12,686

 
$
12,932

Cost of merchandise sold
2,746

 
2,778

 
7,908

 
8,063

 
 
 
 
 
 
 
 
Gross margin
1,628

 
1,666

 
4,778

 
4,869

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Selling, general, and administrative
1,097

 
1,073

 
3,078

 
3,071

Depreciation and amortization
227

 
228

 
665

 
665

 
 
 
 
 
 
 
 
Operating income
304

 
365

 
1,035

 
1,133

 
 
 
 
 
 
 
 
Interest expense, net
85

 
84

 
255

 
251

 
 
 
 
 
 
 
 
Income before income taxes
219

 
281

 
780

 
882

Provision for income taxes
77

 
104

 
282

 
327

 
 
 
 
 
 
 
 
Net income
$
142

 
$
177

 
$
498

 
$
555

 
 
 
 
 
 
 
 
Basic net income per share
$
0.70

 
$
0.82

 
$
2.44

 
$
2.53

Average number of shares
202

 
216

 
204

 
219

 
 
 
 
 
 
 
 
Diluted net income per share
$
0.70

 
$
0.81

 
$
2.43

 
$
2.51

Average number of shares
203

 
218

 
205

 
221

 
 
 
 
 
 
 
 
As a percent of net sales:
 
 
 
 
 
 
 
Gross margin
37.2
%
 
37.5
%
 
37.7
%
 
37.7
%
Selling, general and
 
 
 
 
 
 
 
administrative expenses
25.1
%
 
24.1
%
 
24.3
%
 
23.7
%
Operating income
6.9
%
 
8.2
%
 
8.2
%
 
8.8
%
Net income
3.2
%
 
4.0
%
 
3.9
%
 
4.3
%






KOHL'S CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Millions)
(Unaudited)
 
 
 
 
 
 
 
November 1,
2014
 
November 2,
2013
Assets
 
 
 
 
Current assets:
 
 
 
 
  Cash and cash equivalents
 
$
631

 
$
598

  Merchandise inventories
 
4,973

 
4,959

Income tax receivable
 
52

 
—

  Deferred income taxes
 
125

 
147

  Other
 
297

 
283

 
 
 
 
 
  Total current assets
 
6,078

 
5,987

 
 
 
 
 
Property and equipment, net
 
8,671

 
8,925

Other assets
 
298

 
333

 
 
 
 
 
  Total assets
 
$
15,047

 
$
15,245

 
 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
$
2,384

 
$
2,261

Accrued liabilities
 
1,162

 
1,198

Income taxes payable
 
—

 
41

Current portion of capital lease
 
 
 
 
  and financing obligations
 
109

 
141

 
 
 
 
 
  Total current liabilities
 
3,655

 
3,641

 
 
 
 
 
Long-term debt
 
2,793

 
2,792

Capital lease and financing obligations
 
1,886

 
1,950

Deferred income taxes
 
336

 
390

Other long-term liabilities
 
572

 
548

Shareholders' equity
 
5,805

 
5,924

 
 
 
 
 
  Total liabilities and shareholders' equity
 
$
15,047

 
$
15,245







KOHL'S CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
(Unaudited)
 
 
Nine Months Ended
 
November 1,
2014
 
November 2,
2013
Operating activities
 
 
 
Net income
$
498

 
$
555

Adjustments to reconcile net income to net cash
 
 
 
provided by operating activities:
 
 
 
Depreciation and amortization
665

 
665

Share-based compensation
38

 
41

Excess tax benefits from share-based compensation
(2
)
 
(3
)
Deferred income taxes
(37
)
 
(1
)
Other non-cash revenues and expenses
19

 
30

Changes in operating assets and liabilities:
 
 
 
Merchandise inventories
(1,093
)
 
(1,204
)
Other current and long-term assets
(1
)
 
11

Accounts payable
1,019

 
954

Accrued and other long-term liabilities
(1
)
 
79

Income taxes
(175
)
 
(113
)
 
 
 
 
Net cash provided by operating activities
930

 
1,014

 
 
 
 
Investing activities
 
 
 
Acquisition of property and equipment
(561
)
 
(465
)
Sales of investments in auction rate securities
59

 
1

Other
6

 
13

 
 
 
 
Net cash used in investing activities
(496
)
 
(451
)
 
 
 
 
Financing activities
 
 
 
Treasury stock purchases
(549
)
 
(549
)
Shares withheld for taxes on vested restricted shares
(17
)
 
(13
)
Dividends paid
(239
)
 
(229
)
Proceeds from issuance of debt
—

 
300

Proceeds from financing obligations
5

 
—

Capital lease and financing obligation payments
(87
)
 
(87
)
Proceeds from stock option exercises
111

 
77

Excess tax benefits from share-based compensation
2

 
3

Deferred financing costs
—

 
(4
)
 
 
 
 
Net cash used in financing activities
(774
)
 
(502
)
 
 
 
 
Net increase (decrease) in cash and cash equivalents
(340
)
 
61

Cash and cash equivalents at beginning of period
971

 
537

 
 
 
 
Cash and cash equivalents at end of period
$
631

 
$
598