Kohl's Corporation Reports First Quarter Financial Results Business Wire MENOMONEE FALLS, Wis. -- May 15, 2014 Kohl’s Corporation (NYSE:KSS). Kohl’s Corporation today reported results for the quarter endedMay3, 2014. Quarter ($ in millions) 2014 2013 Change Sales $ 4,070 $ 4,199 (3.1)% Comparable store sales (3.4 )% (1.9 )% - Net income $ 125 $ 147 (15)% Diluted earnings per share $ 0.60 $ 0.66 (9)% Kevin Mansell, Kohl's chairman, president and chief executive officer, said, “We did not achieve our first quarter sales goals, but we were encouraged by the improvement in sales as the quarter progressed. Our teams managed our inventory levels appropriately and expenses were controlled throughout the organization during the quarter." Guidance The Company expects diluted earnings per share of $4.05 to $4.45 for fiscal 2014, which is consistent with its previous guidance. Dividend OnMay 14, 2014, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of$0.39per share. The dividend is payable June 25, 2014to shareholders of record at the close of business onJune 11, 2014. Store Update Kohl’s ended the quarter with 1,160 stores in 49 states, compared with 1,155 stores at the same time last year. The Company opened four new store locations, relocated one existing store and permanently closed two stores during the first quarter of 2014. Credit Card Agreement with Capital One The Company extended its current credit card agreement with Capital One for an additional five years untilMarch 31, 2023. First Quarter 2014 Earnings Conference Call Kohl's will host its quarterly earnings conference call at 8:30 am ET on May 15, 2014. 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 24989593. 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 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 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 Kohl’s (NYSE: KSS) is a leading specialty department store with 1,160 stores in 49 states. With a commitment to inspiring and empowering families to lead fulfilled lives, the company offers amazing national and exclusive brands, incredible savings and inspiring shopping experiences in-store, onlineatKohls.comand via mobile devices.Committed to our communities, Kohl’s has raised more than$257 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 additional information about Kohl’s philanthropic and environmental initiatives, visitwww.Kohls.com/Cares.For a list of store locations and information, or for the added convenience of shopping online, visitwww.Kohls.com. Connect with Kohl’s: Facebook (http://www.facebook.com/Kohls) Twitter (http://twitter.com/Kohls) Google+(http://plus.google.com/+Kohls) Pinterest (http://pinterest.com/Kohls) Instagram (http://instagram.com/Kohls) KOHL'S CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In Millions, except per share data) (Unaudited) Three Months Ended May 3, May 4, 2014 2013 Net sales $ 4,070 $ 4,199 Cost of merchandise sold 2,574 2,671 Gross margin 1,496 1,528 Operating expenses: Selling, general, and administrative 1,000 997 Depreciation and amortization 216 214 Operating income 280 317 Interest expense, net 85 83 Income before income taxes 195 234 Provision for income taxes 70 87 Net income $ 125 $ 147 Basic net income per share $ 0.60 $ 0.66 Average number of shares 206 222 Diluted net income per share $ 0.60 $ 0.66 Average number of shares 208 223 As a percent of net sales: Gross margin 36.8 % 36.4 % Selling, general and administrative expenses 24.6 % 23.7 % Operating income 6.9 % 7.6 % Net income 3.1 % 3.5 % KOHL'S CORPORATION CONSOLIDATED BALANCE SHEETS (In Millions) (Unaudited) May 3, May 4, 2014 2013 Assets Current assets: Cash and cash equivalents $ 717 $ 518 Merchandise inventories 3,981 3,961 Deferred income taxes 137 138 Other 280 294 Total current assets 5,115 4,911 Property and equipment, net 8,677 8,822 Other assets 341 317 Total assets $ 14,133 $ 14,050 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 1,382 $ 1,452 Accrued liabilities 1,078 1,023 Income taxes payable 49 117 Current portion of capital lease and financing obligations 112 107 Total current liabilities 2,621 2,699 Long-term debt 2,792 2,492 Capital lease and financing obligations 1,919 1,938 Deferred income taxes 382 368 Other long-term liabilities 562 532 Shareholders' equity 5,857 6,021 Total liabilities and shareholders' equity $ 14,133 $ 14,050 KOHL'S CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (In Millions) (Unaudited) Three Months Ended May 3, May 4, 2014 2013 Operating activities Net income $ 125 $ 147 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 216 214 Share-based compensation 11 9 Excess tax benefits from share-based compensation (2 ) (1 ) Deferred income taxes 5 (13 ) Other non-cash revenues and expenses 5 11 Changes in operating assets and liabilities: Merchandise inventories (105 ) (210 ) Other current and long-term assets 17 21 Accounts payable 17 145 Accrued and other long-term liabilities (44 ) 11 Income taxes (66 ) (29 ) Net cash provided by operating activities 179 305 Investing activities Acquisition of property and equipment (176 ) (135 ) Other 4 12 Net cash used in investing activities (172 ) (123 ) Financing activities Treasury stock purchases (167 ) (101 ) Shares withheld for taxes on vested restricted shares (14 ) (8 ) Dividends paid (80 ) (77 ) Proceeds from financing obligations 3 — Capital lease and financing obligation payments (29 ) (24 ) Proceeds from stock option exercises 24 8 Excess tax benefits from share-based compensation 2 1 Net cash used in financing activities (261 ) (201 ) Net decrease in cash and cash equivalents (254 ) (19 ) Cash and cash equivalents at beginning of period 971 537 Cash and cash equivalents at end of period $ 717 $ 518 Contact: Kohl’s Corporation Investor Relations: Wes McDonald, Senior Executive Vice President and Chief Financial Officer (262) 703-1893 or Media: Bevin Bailis, SVP, PR and Communications (262) 703-1464
Kohl's Corporation Reports First Quarter Financial Results
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