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 November 9, 2017 |
Dated: November 9, 2017 | KOHL'S CORPORATION |
By: | /s/ Jason J. Kelroy | |||
Jason J. Kelroy | ||||
Executive Vice President, | ||||
General Counsel and Secretary |
Exhibit No. | Description |
99.1 |
Three Months Ended | Nine Months Ended | |||||||||||||
($ in millions) | 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||
Total sales | $ | 4,332 | $ | 4,327 | 0.1% | $ | 12,319 | $ | 12,481 | (1.3)% | ||||
Comparable sales | 0.1 | % | (1.7 | )% | — | (1.0 | )% | (2.4 | )% | — | ||||
Gross margin | 36.8 | % | 37.1 | % | (30) bp | 37.6 | % | 37.4 | % | 15 bp | ||||
Selling, general, and administrative expenses | $ | 1,095 | $ | 1,080 | 1.4% | $ | 3,053 | $ | 3,074 | (0.7)% | ||||
Reported | ||||||||||||||
Net income | $ | 117 | $ | 146 | (20)% | $ | 391 | $ | 303 | 29% | ||||
Diluted earnings per share | $ | 0.70 | $ | 0.83 | (16)% | $ | 2.32 | $ | 1.68 | 38% | ||||
Excluding non-recurring items* | ||||||||||||||
Net income | $ | 117 | $ | 142 | (18)% | $ | 391 | $ | 420 | (7)% | ||||
Diluted earnings per share | $ | 0.70 | $ | 0.80 | (13)% | $ | 2.32 | $ | 2.33 | (0)% |
Three Months Ended | Nine Months Ended | |||||||
(Dollars in Millions, Except per Share Data) | October 28, 2017 | October 29, 2016 | October 28, 2017 | October 29, 2016 | ||||
Net sales | $4,332 | $4,327 | $12,319 | $12,481 | ||||
Cost of merchandise sold | 2,737 | 2,720 | 7,693 | 7,812 | ||||
Gross margin | 1,595 | 1,607 | 4,626 | 4,669 | ||||
As a percent of net sales | 36.8 | % | 37.1 | % | 37.6 | % | 37.4 | % |
Operating expenses: | ||||||||
Selling, general, and administrative | 1,095 | 1,080 | 3,053 | 3,074 | ||||
As a percent of net sales | 25.3 | % | 25.0 | % | 24.8 | % | 24.6 | % |
Depreciation and amortization | 243 | 232 | 724 | 700 | ||||
Impairments, store closing and other costs | — | (6 | ) | — | 186 | |||
Operating income | 257 | 301 | 849 | 709 | ||||
Interest expense, net | 74 | 76 | 225 | 233 | ||||
Income before income taxes | 183 | 225 | 624 | 476 | ||||
Provision for income taxes | 66 | 79 | 233 | 173 | ||||
Net income | $117 | $146 | $391 | $303 | ||||
Average number of shares: | ||||||||
Basic | 166 | 177 | 168 | 180 | ||||
Diluted | 166 | 177 | 168 | 180 | ||||
Net income per share: | ||||||||
Basic | $0.70 | $0.83 | $2.33 | $1.68 | ||||
Diluted | $0.70 | $0.83 | $2.32 | $1.68 | ||||
Excluding non-recurring items* | ||||||||
Net income | $117 | $142 | $391 | $420 | ||||
Diluted net income per share | $0.70 | $0.80 | $2.32 | $2.33 |
(Dollars in Millions) | October 28, 2017 | October 29, 2016 |
Assets | ||
Current assets: | ||
Cash and cash equivalents | $736 | $597 |
Merchandise inventories | 4,632 | 4,721 |
Other | 332 | 336 |
Total current assets | 5,700 | 5,654 |
Property and equipment, net | 7,974 | 8,203 |
Other assets | 226 | 219 |
Total assets | $13,900 | $14,076 |
Liabilities and Shareholders' Equity | ||
Current liabilities: | ||
Accounts payable | $2,113 | $2,097 |
Accrued liabilities | 1,237 | 1,235 |
Income taxes payable | 24 | 66 |
Current portion of capital lease and financing obligations | 131 | 128 |
Total current liabilities | 3,505 | 3,526 |
Long-term debt | 2,796 | 2,794 |
Capital lease and financing obligations | 1,622 | 1,702 |
Deferred income taxes | 275 | 298 |
Other long-term liabilities | 673 | 649 |
Shareholders' equity | 5,029 | 5,107 |
Total liabilities and shareholders' equity | $13,900 | $14,076 |
Nine Months Ended | |||
(Dollars in Millions) | October 28, 2017 | October 29, 2016 | |
Operating activities | |||
Net income | $391 | $303 | |
Adjustments to reconcile net income to net cash | |||
provided by operating activities: | |||
Depreciation and amortization | 724 | 700 | |
Share-based compensation | 34 | 31 | |
Deferred income taxes | 2 | 40 | |
Impairments, store closing and other costs | — | 57 | |
Other non-cash revenues and expenses | (4) | 20 | |
Changes in operating assets and liabilities: | |||
Merchandise inventories | (829) | (679) | |
Other current and long-term assets | 47 | 20 | |
Accounts payable | 606 | 846 | |
Accrued and other long-term liabilities | (11) | 23 | |
Income taxes | (91) | (77) | |
Net cash provided by operating activities | 869 | 1,284 | |
Investing activities | |||
Acquisition of property and equipment | (547) | (591) | |
Proceeds from sale of property and equipment | 18 | 7 | |
Net cash used in investing activities | (529) | (584) | |
Financing activities | |||
Treasury stock purchases | (288) | (441) | |
Shares withheld for taxes on vested restricted shares | (12) | (15) | |
Dividends paid | (277) | (270) | |
Capital lease and financing obligation payments | (101) | (95) | |
Proceeds from stock option exercises | — | 6 | |
Proceeds from financing obligations | — | 5 | |
Net cash used in financing activities | (678) | (810) | |
Net decrease in cash and cash equivalents | (338) | (110) | |
Cash and cash equivalents at beginning of period | 1,074 | 707 | |
Cash and cash equivalents at end of period | $736 | $597 |