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) |
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)) |
Exhibit No. | Description | |
99.1 | Press Release dated February 23, 2017 |
Dated: February 23, 2017 | KOHL'S CORPORATION |
By: | /s/ Jason J. Kelroy | |||
Jason J. Kelroy | ||||
Executive Vice President, | ||||
General Counsel and Secretary |
Exhibit No. | Description |
99.1 | Press Release dated February 23, 2017 |
Three Months | Twelve Months | |||||||||||||
($ in millions) | 2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||
Total sales | $ | 6,205 | $ | 6,387 | (2.8)% | $ | 18,686 | $ | 19,204 | (2.7)% | ||||
Comparable store sales | (2.2)% | (2.4)% | ||||||||||||
Gross margin | 33.4 | % | 33.1 | % | 33 bp | 36.1 | % | 36.1 | % | (6) bp | ||||
Selling, general, and administrative expenses | $ | 1,360 | $ | 1,332 | 2% | $ | 4,435 | $ | 4,452 | —% | ||||
Reported | ||||||||||||||
Net income | $ | 252 | $ | 296 | (15)% | $ | 556 | $ | 673 | (17)% | ||||
Diluted earnings per share | $ | 1.44 | $ | 1.58 | (9)% | $ | 3.11 | $ | 3.46 | (10)% | ||||
Excluding non-recurring items* | ||||||||||||||
Net income | $ | 252 | $ | 296 | (15)% | $ | 673 | $ | 781 | (14)% | ||||
Diluted earnings per share | $ | 1.44 | $ | 1.58 | (9)% | $ | 3.76 | $ | 4.01 | (6)% |
• | Opened 9 small format Kohl's stores |
• | Closed 19 Kohl's stores |
• | Opened two Off/Aisle locations |
• | Opened 12 FILA outlets |
• | Total sales change of (1.3)% to 0.7% which includes sales of approximately $160 million in the 53rd week. |
• | Comparable sales change of (2)% to 0% |
• | Gross margin as a percentage of sales to increase 10 to 15 basis points over 2016 |
• | SG&A dollars to increase 0.5% to 2% over 2016. Excluding the 53rd week in 2017, the Company expects SG&A dollars to increase 0% to 1.5%. SG&A dollars in the 53rd week are expected to be approximately $25 million. |
• | Depreciation expense of $960 million |
• | Interest expense of $300 million |
• | Effective tax rate of 37.5% |
• | $350 million in share repurchases |
• | Capital expenditures of $700 million |
Three Months | Twelve Months | |||||||||||
(Dollars in Millions, Except per Share Data) | Jan 28, 2017 | Jan 30, 2016 | Jan 28, 2017 | Jan 30, 2016 | ||||||||
Net sales | $ | 6,205 | $ | 6,387 | $ | 18,686 | $ | 19,204 | ||||
Cost of merchandise sold | 4,133 | 4,275 | 11,944 | 12,265 | ||||||||
Gross margin | 2,072 | 2,112 | 6,742 | 6,939 | ||||||||
As a percent of net sales | 33.4 | % | 33.1 | % | 36.1 | % | 36.1 | % | ||||
Operating expenses: | ||||||||||||
Selling, general, and administrative | 1,360 | 1,332 | 4,435 | 4,452 | ||||||||
As a percent of net sales | 21.9 | % | 20.9 | % | 23.7 | % | 23.2 | % | ||||
Depreciation and amortization | 239 | 239 | 938 | 934 | ||||||||
Impairments, store closing and other costs | — | — | 186 | — | ||||||||
Operating income | 473 | 541 | 1,183 | 1,553 | ||||||||
Interest expense, net | 75 | 79 | 308 | 327 | ||||||||
Loss on extinguishment of debt | — | — | — | 169 | ||||||||
Income before income taxes | 398 | 462 | 875 | 1,057 | ||||||||
Provision for income taxes | 146 | 166 | 319 | 384 | ||||||||
Net income | $ | 252 | $ | 296 | $ | 556 | $ | 673 | ||||
Average number of shares: | ||||||||||||
Basic | 174 | 187 | 178 | 193 | ||||||||
Diluted | 175 | 187 | 179 | 195 | ||||||||
Net income per share: | ||||||||||||
Basic | $ | 1.45 | $ | 1.58 | $ | 3.12 | $ | 3.48 | ||||
Diluted | $ | 1.44 | $ | 1.58 | $ | 3.11 | $ | 3.46 | ||||
Excluding non-recurring items*: | ||||||||||||
Net income | $ | 252 | $ | 296 | $ | 673 | $ | 781 | ||||
Diluted net income per share | $ | 1.44 | $ | 1.58 | $ | 3.76 | $ | 4.01 |
(Dollars in Millions) | January 28, 2017 | January 30, 2016 | ||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 1,074 | $ | 707 | ||
Merchandise inventories | 3,795 | 4,038 | ||||
Other | 378 | 331 | ||||
Total current assets | 5,247 | 5,076 | ||||
Property and equipment, net | 8,103 | 8,308 | ||||
Other assets | 224 | 222 | ||||
Total assets | $ | 13,574 | $ | 13,606 | ||
Liabilities and Shareholders' Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 1,507 | $ | 1,251 | ||
Accrued liabilities | 1,224 | 1,206 | ||||
Income taxes payable | 112 | 130 | ||||
Current portion of capital lease and financing obligations | 131 | 127 | ||||
Total current liabilities | 2,974 | 2,714 | ||||
Long-term debt | 2,795 | 2,792 | ||||
Capital lease and financing obligations | 1,685 | 1,789 | ||||
Deferred income taxes | 272 | 257 | ||||
Other long-term liabilities | 671 | 563 | ||||
Shareholders' equity | 5,177 | 5,491 | ||||
Total liabilities and shareholders' equity | $ | 13,574 | $ | 13,606 |
(Dollars in Millions) | 2016 | 2015 | ||||
Operating activities | ||||||
Net income | $ | 556 | $ | 673 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 938 | 934 | ||||
Excess tax benefits from share-based compensation | (5 | ) | (10 | ) | ||
Share-based compensation | 41 | 48 | ||||
Deferred income taxes | 13 | (38 | ) | |||
Loss on extinguishment of debt | — | 169 | ||||
Impairments, store closing and other costs | 57 | — | ||||
Other non-cash revenues and expenses | 30 | 24 | ||||
Changes in operating assets and liabilities: | ||||||
Merchandise inventories | 249 | (215 | ) | |||
Other current and long-term assets | (45 | ) | 43 | |||
Accounts payable | 256 | (260 | ) | |||
Accrued and other long-term liabilities | 81 | 53 | ||||
Income taxes | (23 | ) | 53 | |||
Net cash provided by operating activities | 2,148 | 1,474 | ||||
Investing activities | ||||||
Acquisition of property and equipment | (768 | ) | (690 | ) | ||
Other | 12 | 9 | ||||
Net cash used in investing activities | (756 | ) | (681 | ) | ||
Financing activities | ||||||
Treasury stock purchases | (557 | ) | (1,001 | ) | ||
Shares withheld for restricted shares | (17 | ) | (27 | ) | ||
Dividends paid | (358 | ) | (349 | ) | ||
Proceeds from issuance of debt | — | 1,088 | ||||
Reduction of long-term borrowings | — | (1,085 | ) | |||
Premium paid on redemption of debt | — | (163 | ) | |||
Proceeds from financing obligations | 11 | 1 | ||||
Capital lease and financing obligation payments | (127 | ) | (114 | ) | ||
Proceeds from stock option exercises | 18 | 147 | ||||
Excess tax benefits from share-based compensation | 5 | 10 | ||||
Net cash used in financing activities | (1,025 | ) | (1,493 | ) | ||
Net increase (decrease) in cash and cash equivalents | 367 | (700 | ) | |||
Cash and cash equivalents at beginning of period | 707 | 1,407 | ||||
Cash and cash equivalents at end of period | $ | 1,074 | $ | 707 |