EX-99.1 2 exh991.htm PRESS RELEASE

Exhibit 99.1


KOHL'S CORPORATION REPORTS FIRST QUARTER FISCAL 2010

EARNINGS PER SHARE OF $0.64


·

Net Income Growth of 45 Percent

·

Management Raises Fiscal 2010 Earnings Guidance


MENOMONEE FALLS, WI … May 13/BUSINESS WIRE/Kohl’s Corporation (NYSE:KSS). Kohl’s Corporation today reported results for the quarter ended May 1, 2010.


First Quarter Results


Kohl’s Corporation reported net income for the quarter ended May 1, 2010 of $199 million, or $0.64 per diluted share, compared with $137 million, or $0.45 per diluted share, a year ago.  Net sales were $4.0 billion, an increase of 10.9 percent for the quarter.  Comparable store sales for the quarter increased 7.4 percent.


Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “We achieved our goal of gaining market share through our performance in both comparable and total sales growth in the first quarter.  We improved our merchandise margins significantly through strong inventory management and successful private and exclusive brand strategies. Expenses were well managed while improving the store experience for our customers. I am very proud of our 130,000 associates and the role they played in these results and want to thank them for their hard work, loyalty and dedication in delivering on our promise to ‘expect great things’ from Kohl’s."


Mansell added, “Consumers appeared to be a little more confident in their spending, but remain focused on value and ways to make their dollars go farther.  We will continue to be flexible in our sales and inventory planning as well as expense management in order to react to changes in consumer demand.”  


Expansion Update


During the quarter, Kohl’s successfully opened nine stores.  The Company ended the quarter with 1,067 stores in 49 states, compared with 1,022 stores in 49 states at the same time last year.  The Company expects to open an additional 21 stores later this year for a total of 30 stores in fiscal 2010.  The Company completed the remodel of 17 stores during the quarter ended May 1, 2010 and expects to remodel an additional 68 stores later this year.


Earnings Guidance – Second Quarter and Fiscal 2010


The Company provided initial guidance for its second fiscal quarter ending July 31, 2010 of $0.70 to $0.75 per diluted share.  The Company also updated its guidance for fiscal 2010 to $3.57 to $3.75 per diluted share, reflecting its first quarter results, from its initial guidance of $3.40 to $3.63 per diluted share.





First Quarter 2010 Earnings Conference Call


Investors will have an opportunity to listen to the first quarter earnings conference call at 8:30 AM EDT on May 13 by dialing (800) 839-6491 (US/Canada Dial-in Number) or (706) 902-0486 (Int’l/Local Dial-in Number), using Conference ID 71028626.  A replay of the call will also be accessible at approximately 9:30 AM EDT on May 13, until midnight EDT on June 13, 2010. To listen to the replay, dial (706) 645-9291, and use Conference ID 71028626.


In addition, the call will be web cast live over the Internet through the Company's web site located at http://www.kohlscorporation.com/InvestorRelations/event-calendar.htm. To participate in the conference, register at http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=60706&eventID=2807925 at least ten minutes prior to the call to download and install any necessary audio software.  The web cast will be available until June 13, 2010.


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 including guidance on the Company’s targeted sales and earnings.  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


Based in Menomonee Falls, Wis., Kohl’s (NYSE: KSS) is a family-focused, value-oriented specialty department store offering moderately priced, exclusive and national brand apparel, shoes, accessories, beauty and home products in an exciting shopping environment. Kohl’s operates 1,067 stores in 49 states. A company committed to the communities it serves, Kohl’s has raised more than $150 million for children’s initiatives nationwide through its Kohl’s Cares for Kids® philanthropic program, which operates under Kohl's Cares, LLC, a wholly-owned subsidiary of Kohl's Department Stores, Inc. For a list of store locations and information, or for the added convenience of shopping online, visit www.kohls.com.


Investor Relations:  Wes McDonald, Chief Financial Officer, (262) 703-1893

Media:  Vicki Shamion, Vice President – Public Relations, (262) 703-1464



KOHL'S CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In Millions, except per share data)

(Unaudited)

Subject to Reclassification




 

Three Months

 

(13 Weeks) Ended

 

 

% to

 

 

% to

 

May 1,

Net

 

May 2,

Net

 

2010

Sales

 

2009

Sales

 

 

 

 

 

 

Net sales

 $      4,035

 

 

 $      3,638

 

Cost of merchandise sold

2,498

61.9%

 

2,270

62.4%

 

 

 

 

 

 

Gross margin

  1,537

38.1%

 

1,368

37.6%

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Selling, general, and administrative

   1,031

25.5%

 

  961

26.4%

Depreciation and amortization

  151

3.8%

 

  141

3.9%

Preopening expenses

  4

0.1%

 

15

0.4%

 

 

 

 

 

 

Operating income

  351

8.7%

 

251

6.9%

 

 

 

 

 

 

Interest expense, net

  31

0.8%

 

  32

0.9%

 

 

 

 

 

 

Income before income taxes

320

7.9%

 

219

6.0%

Provision for income taxes

121

3.0%

 

   82

2.2%

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 $        199

4.9%

 

137

3.8%

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 $       0.65

 

 

 $        0.45

 

Average number of  shares

307

 

 

  305

 

 

 

 

 

 

 

Diluted net income per share

 $       0.64

 

 

 $        0.45

 

Average number of  shares

 

  309

 

 

  306

 




KOHL'S CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Millions)

(Unaudited)

Subject to Reclassification


 

May 1,

 

May 2,

 

2010

 

2009

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

 $   2,388

 

 $      856

Merchandise inventories

 3,017

 

 2,804

Deferred income taxes

  91

 

  74

Other

  209

 

 188

 

 

 

 

Total current assets

 5,705

 

 3,922

 

 

 

 

Property and equipment, net

7,109

 

 7,001

Long-term investments

318

 

327

Favorable lease rights, net

 201

 

  198

Other assets

 133

 

  115

 

 

 

 

Total assets

 $  13,466

 

 $  11,563

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

Accounts payable

 $   1,412

 

 $   1,003

Accrued liabilities

895

 

777

Income taxes payable

113

 

82

Current portion of long-term

 

 

 

debt and capital leases

318

 

17

 

 

 

 

Total current liabilities

  2,738

 

1,879

 

 

 

 

Long-term debt and capital leases

  1,754

 

2,056

Deferred income taxes

380

 

 323

Other long-term liabilities

497

 

 420

Shareholders' equity

  8,097

 

  6,885

 

 

 

 

Total liabilities and shareholders' equity

 $  13,466

 

 $  11,563




KOHL'S CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions)

(Unaudited)

Subject to Reclassification


 

Three Months

 

(13 Weeks) Ended

 

May 1,

 

May 2,

 

2010

 

2009

 

 

 

 

Operating activities

 

 

 

Net income

 $   199

 

 $   137

Adjustments to reconcile net income to net cash

 

 

 

   provided by operating activities:

 

 

 

Depreciation and amortization,

 

 

 

including debt discount and deferred financing fees

 152

 

141

Share-based compensation

 14

 

11

Excess tax benefits from share-based compensation

  2

 

   -   

Deferred income taxes

  (16)

 

  4

Other non-cash revenues and expenses

  8

 

24

Changes in operating assets and liabilities:

 

 

 

Merchandise inventories

 (92)

 

  (5)

Other current and long-term assets

  12

 

  21

Accounts payable

224

 

122

Accrued and other long-term liabilities

(146)

 

(36)

Income taxes

(70)

 

 (25)

 

 

 

 

Net cash provided by operating activities

287

 

  394

 

 

 

 

Investing activities

 

 

 

Acquisition of property and equipment

 

 

 

  and favorable lease rights

 (191)

 

 (186)

Sales of investments in auction rate securities

  4

 

7

Other

 (1)

 

2

 

 

 

 

Net cash used in investing activities

(188)

 

(177)

 

 

 

 

Financing activities

 

 

 

Treasury stock purchases

  (3)

 

  (1)

Capital lease payments

  (5)

 

  (4)

Proceeds from stock option exercises

32

 

  1

Excess tax benefits from share-based compensation

(2)

 

   -   

 

 

 

 

Net cash provided by (used in) financing activities

  22

 

(4)

 

 

 

 

Net increase in cash and cash equivalents

121

 

  213

Cash and cash equivalents at beginning of period

   2,267

 

  643

 

 

 

 

Cash and cash equivalents at end of period

 $ 2,388

 

 $   856