Kohl's Corporation Reports Fourth Quarter Financial Results

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Kohl's Corporation Reports Fourth Quarter Financial Results

MENOMONEE FALLS, Wis.--(BUSINESS WIRE)-- Kohl's Corporation (NYS: KSS) . Kohl's Corporation today reported results for the fiscal periods ended February 2, 2013.

    
Total SalesComparable
($ in millions)2012 2011 Change(1) Change(2)Store Sales(2)
Quarter$6,342$6,0185.4%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 $1.81 for the fourth quarter of 2011. Net income for the fourth quarter was $378 million compared to $455 million a year ago. For the year, net income was $1.0 billion ($4.17 per 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 53rd 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

On February 27, 2013 Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.35 per share, a nine percent increase over its previous dividend. The dividend is payable March 27, 2013 to shareholders of record at the close of business on March 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 at 8:30 am ET on February 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'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 (NYS: 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 $208 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, or join the discussion on Facebook http://www.facebook.com/kohls or Twitter http://twitter.com/Kohls.

 
KOHL'S CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Millions, except per share data)
(Unaudited)
      
Three MonthsTwelve Months
Feb 2,
2013
Jan 28,
2012
Feb 2,
2013
Jan 28,
2012
(14 Weeks)(13 Weeks)(53 Weeks)(52 Weeks)
 
Net sales$6,342$6,018$19,279$18,804
Cost of merchandise sold4,230 3,841 12,289 11,625 
 
Gross margin2,1122,1776,9907,179
 
Operating expenses:
Selling, general, and administrative1,2121,1784,2674,243
Depreciation and amortization214 194 833 778 
 
Operating income6868051,8902,158
 
Interest expense, net85 76 329 299 
 
Income before income taxes6017291,5611,859
Provision for income taxes223 274 575 692 
 
Net income$378 $455 $986 $1,167 
 
Basic net income per share$1.66$1.82$4.19$4.33
Average number of shares227251235270
 
Diluted net income per share$1.66$1.81$4.17$4.30
Average number of shares228252237271
 
As a percent of net sales:
Gross margin33.3%36.2%36.3%38.2%
Selling, general and
administrative expenses19.1%19.6%22.1%22.6%
Operating income10.8%13.4%9.8%11.5%
Net income6.0%7.6%5.1%6.2%
 
 
KOHL'S CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Millions)
(Unaudited)
     
Feb 2,
2013
Jan 28,
2012

Assets

Current assets:
Cash and cash equivalents$537$1,205
Merchandise inventories3,7483,216
Deferred income taxes122109
Other312 299
 
Total current assets4,7194,829
 
Property and equipment, net8,8728,905
Long-term investments53153
Other assets261 261
 
Total assets$13,905 $14,148
 

Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable$1,307$1,233
Accrued liabilities9861,147
Income taxes payable137133
Current portion of capital lease
and financing obligations105 94
 
Total current liabilities2,5352,607
 
Long-term debt2,4922,141
Capital lease and financing obligations1,9562,009
Deferred income taxes362423
Other long-term liabilities512460
Shareholders' equity6,048 6,508
 
Total liabilities and shareholders' equity$13,905 $14,148
 
 
KOHL'S CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
(Unaudited)
 
  Feb 2,
2013
  Jan 28,
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 amortization833778
Share-based compensation5057
Excess tax benefits from share-based compensation(4)(2)
Deferred income taxes(79)144
Other non-cash revenues and expenses2939
Changes in operating assets and liabilities:
Merchandise inventories(523)(160)
Other current and long-term assets(37)(42)
Accounts payable7496
Accrued and other long-term liabilities(60)63
Income taxes(4)(1)
 
Net cash provided by operating activities1,265 2,139 
 
Investing activities
Acquisition of property and equipment(785)(927)
Sales of investments in auction rate securities109145
Other16 (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 debt350646
Deferred financing costs(3)(8)
Long-term debt payments Read Full Story

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