Kohl’s Corporation (NYSE:KSS). Kohl’s Corporation today reported results for the quarter ended August 2, 2014.
| Quarter | Year to Date | |||||||||||||||||||||
| ($ in millions) | 2014 | 2013 | Change | 2014 | 2013 | Change | ||||||||||||||||
| Sales | $ | 4,242 | $ | 4,289 | (1.1 | )% | $ | 8,312 | $ | 8,488 | (2.1 | )% | ||||||||||
| Comparable store sales | (1.3 | )% | 0.9 | % | - | (2.3 | )% | (0.5 | )% | - | ||||||||||||
| Net income | $ | 232 | $ | 231 | — | % | $ | 357 | $ | 378 | (6 | )% | ||||||||||
| Diluted earnings per share | $ | 1.13 | $ | 1.04 | 9 | % | $ | 1.73 | $ | 1.70 | 2 | % | ||||||||||
Kevin Mansell, Kohl's chairman, president and chief executive officer, said, “We are pleased with the improvement we saw in sales as the quarter progressed. The improvement was the most dramatic in the month of July where we achieved a positive comp. As they consistently do, our teams did a great job of managing expenses throughout the quarter. We enter the back-to-school season with fresh, new inventory and encouraging momentum."
Dividend
On August 12, 2014, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.39 per share. The dividend is payable September 24, 2014 to shareholders of record at the close of business on September 10, 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. It expects to open four new stores this Fall, including one store which was temporarily closed in the first quarter for a complete re-build.
Second Quarter 2014 Earnings Conference Call
Kohl's will host its quarterly earnings conference call at 8:30 am ET on August 14, 2014. The phone number for the conference call is (800) 230-1096. Replays of the call will be available for 30 days by dialing (800) 475-6701. The conference ID for both the live call and the replay is 333513. 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. 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
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, online at Kohls.com and 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, visit www.Kohls.com/Cares. For a list of store locations and information, or for the added convenience of shopping online, visit www.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 | Six Months Ended | |||||||||||||||
| August 2, | August 3, | August 2, | August 3, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net sales | $ | 4,242 | $ | 4,289 | $ | 8,312 | $ | 8,488 | ||||||||
| Cost of merchandise sold | 2,588 | 2,613 | 5,162 | 5,284 | ||||||||||||
| Gross margin | 1,654 | 1,676 | 3,150 | 3,204 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general, and administrative | 981 | 1,000 | 1,981 | 1,997 | ||||||||||||
| Depreciation and amortization | 222 | 225 | 438 | 439 | ||||||||||||
| Operating income | 451 | 451 | 731 | 768 | ||||||||||||
| Interest expense, net | 85 | 84 | 170 | 167 | ||||||||||||
| Income before income taxes | 366 | 367 | 561 | 601 | ||||||||||||
| Provision for income taxes | 134 | 136 | 204 | 223 | ||||||||||||
| Net income | $ | 232 | $ | 231 | $ | 357 | $ | 378 | ||||||||
| Basic net income per share | $ | 1.14 | $ | 1.05 | $ | 1.74 | $ | 1.71 | ||||||||
| Average number of shares | 204 | 220 | 205 | 221 | ||||||||||||
| Diluted net income per share | $ | 1.13 | $ | 1.04 | $ | 1.73 | $ | 1.70 | ||||||||
| Average number of shares | 205 | 222 | 206 | 222 | ||||||||||||
| As a percent of net sales: | ||||||||||||||||
| Gross margin | 39.0 | % | 39.1 | % | 37.9 | % | 37.7 | % | ||||||||
Selling, general and administrative expenses | 23.1 | % | 23.3 | % | 23.8 | % | 23.5 | % | ||||||||
| Operating income | 10.6 | % | 10.5 | % | 8.8 | % | 9.0 | % | ||||||||
| Net income | 5.5 | % | 5.4 | % | 4.3 | % | 4.5 | % | ||||||||
| KOHL'S CORPORATION | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| (In Millions) | ||||||
| (Unaudited) | ||||||
| August 2, | August 3, | |||||
| 2014 | 2013 | |||||
Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 746 | $ | 592 | ||
| Merchandise inventories | 3,899 | 3,856 | ||||
| Deferred income taxes | 132 | 150 | ||||
| Other | 300 | 284 | ||||
| Total current assets | 5,077 | 4,882 | ||||
| Property and equipment, net | 8,686 | 8,891 | ||||
| Other assets | 338 | 324 | ||||
| Total assets | $ | 14,101 | $ | 14,097 | ||
Liabilities and Shareholders' Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 1,479 | $ | 1,396 | ||
| Accrued liabilities | 1,057 | 1,065 | ||||
| Income taxes payable | 43 | 75 | ||||
Current portion of capital lease and financing obligations | 105 | 147 | ||||
| Total current liabilities | 2,684 | 2,683 | ||||
| Long-term debt | 2,792 | 2,492 | ||||
| Capital lease and financing obligations | 1,896 | 1,948 | ||||
| Deferred income taxes | 358 | 381 | ||||
| Other long-term liabilities | 562 | 540 | ||||
| Shareholders' equity | 5,809 | 6,053 | ||||
| Total liabilities and shareholders' equity | $ | 14,101 | $ | 14,097 | ||
| KOHL'S CORPORATION | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In Millions) | ||||||||
| (Unaudited) | ||||||||
Six Months Ended | ||||||||
| August 2, | August 3, | |||||||
| 2014 | 2013 | |||||||
| Operating activities | ||||||||
| Net income | $ | 357 | $ | 378 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 438 | 439 | ||||||
| Share-based compensation | 24 | 27 | ||||||
| Excess tax benefits from share-based compensation | (2 | ) | (2 | ) | ||||
| Deferred income taxes | (17 | ) | (12 | ) | ||||
| Other non-cash revenues and expenses | 11 | 18 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Merchandise inventories | (20 | ) | (103 | ) | ||||
| Other current and long-term assets | 3 | 22 | ||||||
| Accounts payable | 114 | 89 | ||||||
| Accrued and other long-term liabilities | (103 | ) | (20 | ) | ||||
| Income taxes | (75 | ) | (74 | ) | ||||
| Net cash provided by operating activities | 730 | 762 | ||||||
| Investing activities | ||||||||
| Acquisition of property and equipment | (374 | ) | (284 | ) | ||||
| Other | 6 | 14 | ||||||
| Net cash used in investing activities | (368 | ) | (270 | ) | ||||
| Financing activities | ||||||||
| Treasury stock purchases | (392 | ) | (266 | ) | ||||
| Shares withheld for taxes on vested restricted shares | (16 | ) | (13 | ) | ||||
| Dividends paid | (160 | ) | (153 | ) | ||||
| Proceeds from financing obligations | 3 | — | ||||||
| Capital lease and financing obligation payments | (61 | ) | (52 | ) | ||||
| Proceeds from stock option exercises | 37 | 46 | ||||||
| Excess tax benefits from share-based compensation | 2 | 2 | ||||||
| Deferred financing costs | — | (1 | ) | |||||
| Net cash used in financing activities | (587 | ) | (437 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | (225 | ) | 55 | |||||
| Cash and cash equivalents at beginning of period | 971 | 537 | ||||||
| Cash and cash equivalents at end of period | $ | 746 | $ | 592 | ||||
Contacts:
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
