Kohl's Corporation Reports First Quarter Financial Results *Earnings per share of $0.66 versus previous guidance of $0.55 to $0.63 Business Wire MENOMONEE FALLS, Wis. -- May 16, 2013 Kohl’s Corporation (NYSE:KSS). Kohl’s Corporation today reported results for the quarter endedMay4, 2013. ($ in millions) 2013 2012 Change Sales $ 4,199 $ 4,243 (1.0 )% Comparable store sales (1.9 )% 0.2 % - Net income $ 147 $ 154 (4 )% Diluted earnings per share $ 0.66 $ 0.63 5 % Kevin Mansell, Kohl's chairman, president and chief executive officer, said, “After a slow start, sales improved considerably in April as the weather finally improved in our most weather-sensitive regions. Despite the lower than expected sales, we outperformed our earnings guidance as gross margin results and expense management were better than expected. Our inventory levels are consistent with our expectations." Dividend OnMay 15, 2013, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of$0.35per share. The dividend is payable June 26, 2013to shareholders of record at the close of business onJune 12, 2013. Store Update Kohl’s ended the quarter with 1,155 stores in 49 states, compared with 1,134 stores at the same time last year. The Company opened nine new stores during the first quarter of 2013 and expects to open three new stores and remodel 30 stores in the Fall. Earnings Guidance The Company provided initial guidance for the fiscal quarter ending August 3, 2013 of $1.00 to $1.08 per diluted share. The guidance is based on total sales growth of 1 to 3 percent and comparable store sales growth of 0 to 2 percent and includes expected second quarter share repurchases of $250 million. First Quarter 2013 Earnings Conference Call Kohl's will host a first quarter earnings conference call at 8:30 am ET on May 16, 2013. The phone number for the conference call is (706) 902-0486. Replays of the call will be available for 30 days by dialing (855) 859-2056 or (404) 537-3406. The conference ID for both the live call and the replay is 42313613. The conference call and replays are also available via the Company's web site at http://www.kohlscorporation.com/InvestorRelations/event-calendar.htm. Jefferies 2013 Global Consumer Conference Wes McDonald, Senior Executive Vice President and Chief Financial Officer, will be presenting at the Jefferies 2013 Global Consumer Conferenceon June 18, 2013in Nantucket, MA. Additional details, including the time of Mr. McDonald’s presentation, the live webcast and replays of the presentation, will be available via the Company’s web site athttp://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 sales and 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 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. With a commitment to environmental leadership, Kohl’s operates 1,155 stores in 49 states. In support of the communities it serves, Kohl’s has raised more than $231 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 a list of store locations and information, or for the added convenience of shopping online, visit www.Kohls.com, join the discussion on Facebook (http://www.facebook.com/kohls) or Twitter (http://twitter.com/Kohls) or get inspired on Pinterest (http://pinterest.com/kohls/) and Instagram (http://instagram.com/kohls). KOHL'S CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In Millions, except per share data) (Unaudited) Three Months Ended May 4, April 28, 2013 2012 Net sales $ 4,199 $ 4,243 Cost of merchandise sold 2,671 2,719 Gross margin 1,528 1,524 Operating expenses: Selling, general, and administrative 997 1,002 Depreciation and amortization 214 201 Operating income 317 321 Interest expense, net 83 82 Income before income taxes 234 239 Provision for income taxes 87 85 Net income $ 147 $ 154 Basic net income per share $ 0.66 $ 0.63 Average number of shares 222 243 Diluted net income per share $ 0.66 $ 0.63 Average number of shares 223 245 As a percent of net sales: Gross margin 36.4 % 35.9 % Selling, general and administrative expenses 23.7 % 23.6 % Operating income 7.6 % 7.6 % Net income 3.5 % 3.6 % KOHL'S CORPORATION CONSOLIDATED BALANCE SHEETS (In Millions) (Unaudited) May 4, April 28, 2013 2012 Assets Current assets: Cash and cash equivalents $ 518 $ 1,029 Merchandise inventories 3,961 3,454 Deferred income taxes 138 119 Other 294 277 Total current assets 4,911 4,879 Property and equipment, net 8,822 8,961 Long-term investments 58 156 Other assets 259 266 Total assets $ 14,050 $ 14,262 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 1,452 $ 1,609 Accrued liabilities 1,023 1,132 Income taxes payable 117 80 Current portion of capital lease and financing obligations 107 98 Total current liabilities 2,699 2,919 Long-term debt 2,492 2,141 Capital lease and financing obligations 1,938 2,008 Deferred income taxes 368 421 Other long-term liabilities 532 473 Shareholders' equity 6,021 6,300 Total liabilities and shareholders' equity $ 14,050 $ 14,262 KOHL'S CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (In Millions) (Unaudited) May 4, April 28, 2013 2012 Operating activities Net income $ 147 $ 154 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 214 201 Share-based compensation 9 12 Excess tax benefits from share-based compensation (1 ) (1 ) Deferred income taxes (13 ) (14 ) Other non-cash revenues and expenses 11 (1 ) Changes in operating assets and liabilities: Merchandise inventories (210 ) (236 ) Other current and long-term assets 21 17 Accounts payable 145 376 Accrued and other long-term liabilities 11 (37 ) Income taxes (29 ) (54 ) Net cash provided by operating activities 305 417 Investing activities Acquisition of property and equipment (135 ) (177 ) Sales of investments in auction rate securities 1 1 Other 11 — Net cash used in investing activities (123 ) (176 ) Financing activities Treasury stock purchases (109 ) (325 ) Dividends paid (77 ) (77 ) Proceeds from financing obligations — 3 Capital lease and financing obligation payments (24 ) (27 ) Proceeds from stock option exercises 8 8 Excess tax benefits from share-based compensation 1 1 Net cash used in financing activities (201 ) (417 ) Net decrease in cash and cash equivalents (19 ) (176 ) Cash and cash equivalents at beginning of period 537 1,205 Cash and cash equivalents at end of period $ 518 $ 1,029 Contact: Kohl’s Corporation Investor Relations: Wes McDonald, Senior Executive Vice President and Chief Financial Officer (262) 703-1893 or Joanne Crevoiserat, Executive Vice President - Finance (262) 703-2945 or Media: Jen Johnson, Director - Public Relations (262) 703-5241
Kohl's Corporation Reports First Quarter Financial Results
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