EX-99.1 2 kss-ex991_6.htm EX-99.1 kss-ex991_6.htm

Exhibit 99.1

Kohl's Corporation Reports Financial Results

 

 

•

Comparable sales decrease 3.4%

 

•

Diluted earnings per share of $0.38

 

•

Adjusted diluted earnings per share(1) of $0.61

 

MENOMONEE FALLS, Wis.--(BUSINESS WIRE)—May 21, 2019-- Kohl’s Corporation (NYSE:KSS) today reported results for the quarter ended May 4, 2019.

 

 

Three Months

($ in millions, except per share data)

 

2019

2018

Change

Total revenue

  $

4,087

 

  $

4,208

 

 

(2.9

)%

Comparable sales

 

(3.4

)%

 

3.6

%

 

 

 

Gross margin

 

36.8

%

 

36.9

%

(6) bps

 

Selling, general, and administrative expenses

  $

1,275

 

  $

1,259

 

 

1.2

%

Reported

 

 

 

 

 

 

 

 

 

Net income

  $

62

 

  $

75

 

 

(17

)%

Diluted earnings per share

  $

0.38

 

  $

0.45

 

 

(16

)%

Non-GAAP(1)

 

 

 

 

 

 

 

 

 

Net income

  $

98

 

  $

107

 

 

(8

)%

Diluted earnings per share

  $

0.61

 

  $

0.64

 

 

(5

)%

(1) Excludes Impairments, store closing and other costs in 2019 and Loss on extinguishment of debt in 2018.

 

Michelle Gass, Kohl's chief executive officer, said, "The year has started off slower than we’d like, with our first quarter sales coming in below our expectation.  We are actively addressing the opportunities that impacted our first quarter sales and we have strong initiatives that will enhance our sales performance in the second half.  We are incredibly excited about our nationwide rollout of the Amazon returns program as well as several important brand launches and program expansions.  Operationally, the team reacted appropriately throughout the quarter by managing expenses in line with our expectations.  While we are planning the year more conservatively, we continue to invest in our business and operate with a view on our long-term success." 

 

Dividend

On May 15, 2019, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.67 per share. The dividend is payable June 26, 2019 to shareholders of record at the close of business on June 12, 2019.

 

Guidance Update

The Company now expects adjusted annual earnings per diluted share to be $5.15 to $5.45, compared to its prior guidance of $5.80 to $6.15.

 

First Quarter 2019 Earnings Conference Call

Kohl's will host its quarterly earnings conference call at 9:00 am ET on May 21, 2019. The phone number for the conference call is (800) 230-1085. Replays of the call will be available for 30 days by dialing (800) 475-6701.  The conference ID is 465049. The conference call and replays are also accessible via the Company's web site at http://corporate.kohls.com/investors/events-and-presentations.

 

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 2019 earnings guidance. 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. Forward-looking statements relate to the date initially made, and Kohl’s undertakes no obligation to update them.

 


About Kohl's

Kohl’s (NYSE: KSS) is a leading omnichannel retailer with more than 1,100 stores in 49 states. With a commitment to inspiring and empowering families to lead fulfilled lives, Kohl’s offers amazing​​ national and exclusive brands, incredible savings and an easy shopping experience in our stores, online at Kohls.com and on Kohl's mobile app. ​Since its founding, Kohl's has given more than $700 million to support communities nationwide, with a focus on family health and wellness. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com or follow @KohlsNews on Twitter.

 

Contacts

Investor Relations:

Mark Rupe, (262) 703-1266, mark.rupe@kohls.com

 

Media:

Jen Johnson, (262) 703-5241, jen.johnson@kohls.com

 

 

KOHL’S CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

Three Months Ended

(Dollars in Millions, Except per Share Data)

May 4,

2019

May 5,

2018

Net sales

  $

3,821

 

  $

3,953

 

Other revenue

 

266

 

 

255

 

Total revenue

 

4,087

 

 

4,208

 

Cost of merchandise sold

 

2,415

 

 

2,496

 

Gross margin rate

 

36.8

%

 

36.9

%

Operating expenses:

 

 

 

 

 

 

Selling, general, and administrative

 

1,275

 

 

1,259

 

As a percent of total revenue

 

31.2

%

 

29.9

%

Depreciation and amortization

 

230

 

 

243

 

Impairments, store closing and other costs

 

49

 

 

-

 

Operating income

 

118

 

 

210

 

Interest expense, net

 

52

 

 

71

 

Loss on extinguishment of debt

 

—

 

 

42

 

Income before income taxes

 

66

 

 

97

 

Provision for income taxes

 

4

 

 

22

 

Net income

  $

62

 

  $

75

 

Average number of shares:

 

 

 

 

 

 

Basic

 

161

 

 

165

 

Diluted

 

162

 

 

167

 

Earnings per share:

 

 

 

 

 

 

Basic

  $

0.38

 

  $

0.46

 

Diluted

  $

0.38

 

  $

0.45

 

 

ADJUSTED NET INCOME AND DILUTED EARNINGS PER SHARE, NON-GAAP FINANCIAL MEASURES

(Unaudited)

 

 

Three Months Ended

 

(Dollars in Millions, Except per Share Data)

May 4,

2019

May 5,

2018

Net income

 

 

 

 

 

 

GAAP

  $

62

 

  $

75

 

Impairments, store closing and other costs

 

36

 

 

-

 

Loss on extinguishment of debt

 

-

 

 

32

 

Adjusted (non-GAAP)

  $

98

 

  $

107

 

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

 

 

GAAP

  $

0.38

 

  $

0.45

 

Impairments, store closing and other costs

 

0.23

 

 

-

 

Loss on extinguishment of debt

 

-

 

 

0.19

 

Adjusted (non-GAAP)

  $

0.61

 

  $

0.64

 

KOHL’S CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

Three Months Ended

 

(Dollars in Millions)

May 4,

2019

 

May 5,

2018

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

  $

543

 

  $

822

 

Merchandise inventories

 

3,680

 

 

3,726

 

Other

 

412

 

 

435

 

Total current assets

 

4,635

 

 

4,983

 

Property and equipment, net

 

7,211

 

 

7,694

 

Operating leases

 

2,453

 

 

-

 

Other assets

 

167

 

 

239

 

Total assets

  $

14,466

 

  $

12,916

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

  $

1,295

 

  $

1,454

 

Accrued liabilities

 

1,184

 

 

1,135

 

Income taxes payable

 

40

 

 

118

 

Current portion of:

 

 

 

 

 

 

Finance leases and financing obligations

 

115

 

 

123

 

Operating leases

 

158

 

 

-

 

Total current liabilities

 

2,792

 

 

2,830

 

Long-term debt

 

1,855

 

 

2,301

 

Finance leases and financing obligations

 

1,225

 

 

1,563

 

Operating leases

 

2,680

 

 

-

 

Deferred income taxes

 

233

 

 

198

 

Other long-term liabilities

 

239

 

 

668

 

Shareholders' equity

 

5,442

 

 

5,356

 

Total liabilities and shareholders' equity

  $

14,466

 

  $

12,916

 

KOHL’S CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

Three Months Ended

(Dollars in Millions)

May 4,

2019

May 5,

2018

Operating activities

 

 

 

 

 

 

Net income

  $

62

 

  $

75

 

Adjustments to reconcile net income to net cash provided

   by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

230

 

 

243

 

Share-based compensation

 

15

 

 

30

 

Deferred income taxes

 

18

 

 

(12

)

Impairments, store closing and other costs

 

49

 

 

—

 

Loss on extinguishment of debt

 

—

 

 

42

 

Non-cash operating lease expense

 

37

 

 

—

 

Other non-cash expenses

 

2

 

 

2

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Merchandise inventories

 

(202

)

 

(181

)

Other current and long-term assets

 

6

 

 

68

 

Accounts payable

 

108

 

 

183

 

Accrued and other long-term liabilities

 

(141

)

 

(107

)

Income taxes

 

1

 

 

44

 

Operating lease liabilities

 

(49

)

 

—

 

Net cash provided by operating activities

 

136

 

 

387

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

Acquisition of property and equipment

 

(238

)

 

(133

)

Net cash used in investing activities

 

(238

)

 

(133

)

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

Treasury stock purchases

 

(121

)

 

(70

)

Shares withheld for taxes on vested restricted shares

 

(25

)

 

(17

)

Dividends paid

 

(108

)

 

(101

)

Reduction of long-term borrowings

 

(6

)

 

(500

)

Premium paid on redemption of debt

 

—

 

 

(35

)

Finance lease and financing obligation payments

 

(31

)

 

(33

)

Proceeds from stock option exercises

 

2

 

 

16

 

Net cash used in financing activities

 

(289

)

 

(740

)

Net decrease in cash and cash equivalents

 

(391

)

 

(486

)

Cash at beginning of period

 

934

 

 

1,308

 

Cash at end of period

  $

543

 

  $

822