Kohl's Corporation Reports Fourth Quarter Financial Results

  Kohl's Corporation Reports Fourth Quarter Financial Results

Business Wire

MENOMONEE FALLS, Wis. -- February 28, 2013

Kohl’s Corporation (NYSE:KSS). Kohl’s Corporation today reported results for
the fiscal periods endedFebruary2, 2013.

                                                               
                Total Sales                                         Comparable
($ in           2012        2011        Change^(1)  Change^(2)   Store
millions)                                                           Sales^(2)
Quarter         $ 6,342      $ 6,018      5.4%         2.5%         1.9%
Year         $ 19,279   $ 18,804   2.5%        1.6%        0.3%
                                                                    
^(1) Compares the periods ended February 2, 2013 to the periods ended January
28, 2012
^(2) Compares the periods ended January 26, 2013 to the periods ended January
28, 2012


Kohl’s Corporation reported fourth quarter diluted earnings per share of $1.66
compared to $1.81for the fourth quarter of 2011. Net income for the fourth
quarter was $378 million compared to $455million a year ago. For the year,
net income was $1.0 billion ($4.17per diluted share) compared to $1.2 billion
($4.30 per diluted share) for fiscal 2011.

Kevin Mansell, Kohl’s chairman, president and chief executive officer, said,
“Sales for the fourth quarter developed very late and, as a result, came at a
cost to profitability. We were, however, able to end the quarter with levels
of inventory appropriate for a strong transition to Spring. Our associates
across the company did an excellent job in managing expenses throughout the
year."

Impact of 53rd Week

The retail calendar for fiscal January 2013 included a fifth week, resulting
in a 14-week fiscal fourth quarter and a 53-week year. During this 53^rd week,
total sales were $169 million; selling, general and administrative expenses
were $30 million; interest was $2 million; net income was $15 million and
diluted earnings per share was $0.06.

Dividend

OnFebruary 27, 2013 Kohl's Board of Directors declared a quarterly cash
dividend on the Company's common stock of$0.35per share, a nine percent
increase over its previous dividend. The dividend is payable March 27, 2013to
shareholders of record at the close of business onMarch 13, 2013.

Store Update

Kohl’s ended the quarter with 1,146 stores in 49 states, compared with 1,127
stores at the same time last year. During the year, the Company opened 21 new
stores, including 1 relocated store, closed 1 store and completed 50 remodels.

Earnings Guidance

The Company issued its initial guidance for fiscal 2013. Based on assumptions
of total and comparable store sales increases of 0 to 2 percent, the Company
expects earnings per diluted share of $4.15 to $4.45 for the year. For the
first fiscal quarter, the Company expects earnings per diluted share of $0.55
to $0.63 per diluted share based on assumptions of a total sales increase of
0.5 to 2.5 percent and a comparable store sales increase of 0 to 2 percent.

Fourth Quarter 2012 Earnings Conference Call

Kohl’s will host its quarterly earnings conference call at8:30 am
ETonFebruary 28, 2013. The phone number for the conference call is (706)
902-0486 and the conference ID is 15143990. Replays of the call will be
available for 30 days by dialing (855) 859-2056 or (404) 537-3406. 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, including guidance on
the Company's targeted earnings.Kohl'sintends 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
causeKohl'sactual 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 inKohl'sfilings with theSEC.

About Kohl's

Based inMenomonee 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. With a commitment to
environmental leadership, Kohl's operates 1,146 stores in 49 states. In
support of the communities it serves, Kohl's has raised more than$208million
for children's initiatives nationwide through its Kohl's Cares® cause
merchandise program, which operates underKohl'sCares, LLC, a wholly-owned
subsidiary ofKohl's Department Stores, Inc.For a list of store locations and
information, or for the added convenience of shopping online,
visitwww.Kohls.com,or join the discussion on
Facebookhttp://www.facebook.com/kohlsor Twitterhttp://twitter.com/Kohls.


KOHL'S CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Millions, except per share data)
(Unaudited)
                                                             
                           Three Months                Twelve Months
                           Feb 2,       Jan 28,        Feb 2,       Jan 28,
                           2013         2012           2013         2012
                           (14 Weeks)   (13 Weeks)     (53 Weeks)   (52 Weeks)
                                                                    
Net sales                  $  6,342     $  6,018       $ 19,279     $ 18,804
Cost of merchandise        4,230       3,841         12,289      11,625   
sold
                                                                    
Gross margin               2,112        2,177          6,990        7,179
                                                                    
Operating expenses:
Selling, general, and      1,212        1,178          4,267        4,243
administrative
Depreciation and           214         194           833         778      
amortization
                                                                    
Operating income           686          805            1,890        2,158
                                                                    
Interest expense, net      85          76            329         299      
                                                                    
Income before income       601          729            1,561        1,859
taxes
Provision for income       223         274           575         692      
taxes
                                                                    
Net income                 $  378      $  455        $ 986       $ 1,167  
                                                                    
Basic net income per       $  1.66      $  1.82        $ 4.19       $ 4.33
share
Average number of          227          251            235          270
shares
                                                                    
Diluted net income per     $  1.66      $  1.81        $ 4.17       $ 4.30
share
Average number of          228          252            237          271
shares
                                                                    
As a percent of net
sales:
Gross margin               33.3     %   36.2     %     36.3     %   38.2     %
Selling, general and
administrative             19.1     %   19.6     %     22.1     %   22.6     %
expenses
Operating income           10.8     %   13.4     %     9.8      %   11.5     %
Net income                 6.0      %   7.6      %     5.1      %   6.2      %
                                                                             


KOHL'S CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Millions)
(Unaudited)
                                                          
                                                 Feb 2,         Jan 28,
                                                 2013           2012
Assets
Current assets:
Cash and cash equivalents                        $ 537          $ 1,205
Merchandise inventories                          3,748          3,216
Deferred income taxes                            122            109
Other                                            312           299
                                                                
Total current assets                             4,719          4,829
                                                                
Property and equipment, net                      8,872          8,905
Long-term investments                            53             153
Other assets                                     261           261
                                                                
Total assets                                     $ 13,905      $ 14,148
                                                                
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable                                 $ 1,307        $ 1,233
Accrued liabilities                              986            1,147
Income taxes payable                             137            133
Current portion of capital lease
and financing obligations                        105           94
                                                                
Total current liabilities                        2,535          2,607
                                                                
Long-term debt                                   2,492          2,141
Capital lease and financing obligations          1,956          2,009
Deferred income taxes                            362            423
Other long-term liabilities                      512            460
Shareholders' equity                             6,048         6,508
                                                                
Total liabilities and shareholders' equity       $ 13,905      $ 14,148
                                                                  


KOHL'S CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
(Unaudited)

                                                   Feb 2,       Jan 28,
                                                     2013           2012
                                                     (53 Weeks)     (52 Weeks)
Operating activities
Net income                                           $   986        $  1,167
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                        833            778
Share-based compensation                             50             57
Excess tax benefits from share-based                 (4       )     (2       )
compensation
Deferred income taxes                                (79      )     144
Other non-cash revenues and expenses                 29             39
Changes in operating assets and liabilities:
Merchandise inventories                              (523     )     (160     )
Other current and long-term assets                   (37      )     (42      )
Accounts payable                                     74             96
Accrued and other long-term liabilities              (60      )     63
Income taxes                                         (4       )     (1       )
                                                                    
Net cash provided by operating activities            1,265         2,139    
                                                                    
Investing activities
Acquisition of property and equipment                (785     )     (927     )
Sales of investments in auction rate securities      109            145
Other                                                16            (20      )
                                                                    
Net cash used in investing activities                (660     )     (802     )
                                                                    
Financing activities
Treasury stock purchases                             (1,293   )     (2,311   )
Dividends paid                                       (300     )     (271     )
Proceeds from issuance of debt                       350            646
Deferred financing costs                             (3       )     (8       )
Long-term debt payments                              —              (400     )
Interest rate hedge payments                         —              (48      )
Proceeds from financing obligations                  12             14
Capital lease and financing obligation payments      (111     )     (91      )
Proceeds from stock option exercises                 68             58
Excess tax benefits from share-based                 4             2        
compensation
                                                                    
Net cash used in financing activities                (1,273   )     (2,409   )
                                                                    
Net decrease in cash and cash equivalents            (668     )     (1,072   )
Cash and cash equivalents at beginning of period     1,205         2,277    
                                                                    
Cash and cash equivalents at end of period           $   537       $  1,205 

Contact:

Kohl’s Corporation
Investor Relations:
Wes McDonald, Senior Executive Vice President and Chief Financial Officer
(262) 703-1893
or
Media:
Jen Johnson, Director - Public Relations
(262) 703-5241
 
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