Kohl's Corporation Reports First Quarter Financial Results

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Kohl's Corporation Reports First Quarter Financial Results

  • Earnings per share of $0.66 versus previous guidance of $0.55 to $0.63

MENOMONEE FALLS, Wis.--(BUSINESS WIRE)-- Kohl's Corporation (NYS: KSS) . Kohl's Corporation today reported results for the quarter ended May 4, 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

On May 15, 2013, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.35 per share. The dividend is payable June 26, 2013 to shareholders of record at the close of business on June 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 Conference on June 18, 2013 in 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 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 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 1,155 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,
20132012
Net sales$4,199$4,243
Cost of merchandise sold2,671 2,719 
 
Gross margin1,5281,524
 
Operating expenses:
Selling, general, and administrative9971,002
Depreciation and amortization214 201 
 
Operating income317321
 
Interest expense, net83 82 
 
Income before income taxes234239
Provision for income taxes87 85 
 
Net income$147 $154 
 
Basic net income per share$0.66$0.63
Average number of shares222243
 
Diluted net income per share$0.66$0.63
Average number of shares223245
 
As a percent of net sales:
Gross margin36.4%35.9%
Selling, general and
administrative expenses23.7%23.6%
Operating income7.6%7.6%
Net income3.5%3.6%
 
KOHL'S CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Millions)
(Unaudited)
    
May 4,April 28,
20132012

Assets

Current assets:
Cash and cash equivalents$518$1,029
Merchandise inventories3,9613,454
Deferred income taxes138119
Other294 277
 
Total current assets4,9114,879
 
Property and equipment, net8,8228,961
Long-term investments58156
Other assets259 266
 
Total assets$14,050 $14,262
 

Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable$1,452$1,609
Accrued liabilities1,0231,132
Income taxes payable11780
Current portion of capital lease
and financing obligations107 98
 
Total current liabilities2,6992,919
 
Long-term debt2,4922,141
Capital lease and financing obligations1,9382,008
Deferred income taxes368421
Other long-term liabilities532473
Shareholders' equity6,021 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,
20132012
Operating activities
Net income$147$154
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization214201
Share-based compensation912
Excess tax benefits from share-based compensation(1)(1)
Deferred income taxes(13)(14)
Other non-cash revenues and expenses11(1)
Changes in operating assets and liabilities:
Merchandise inventories(210)(236)
Other current and long-term assets2117
Accounts payable145376
Accrued and other long-term liabilities11(37)
Income taxes(29)(54)
 
Net cash provided by operating activities305 417 
 
Investing activities
Acquisition of property and equipment(135)(177)
Sales of investments in auction rate securities11
Other11  
 
Net cash used in investing activities(123)(176)
 
Financing activities
Treasury stock purchases(109)(325)
Dividends paid(77)(77)
Proceeds from financing obligations3
Capital lease and financing obligation payments(24)(27)
Proceeds from stock option exercises88
Excess tax benefits from share-based compensation1 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 period537 1,205 
 
Cash and cash equivalents at end of period$518 $1,029 
 



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

KEYWORDS:   United States  North America  Wisconsin

INDUSTRY KEYWORDS:

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