Financial Performance - Fourth quarter net sales decreased 1.1% year-over-year to $5.7 billion, while fiscal year 2023 net sales decreased 3.4% to $16.6 billion[4] - Comparable sales for the fourth quarter decreased 4.3%, and for the fiscal year 2023, comparable sales decreased 4.7%[5] - Gross margin as a percentage of net sales increased by 937 basis points to 32.4% in the fourth quarter, and for the fiscal year, it increased by 347 basis points to 36.7%[5] - Operating income for the fourth quarter was $299 million, compared to a loss of $302 million in the prior year, representing an increase of 1,005 basis points[5] - Net income for the fourth quarter was $186 million, or $1.67 per diluted share, compared to a net loss of $273 million, or ($2.49) per diluted share in the prior year[5] - Operating cash flow for the fourth quarter was $789 million, and for the fiscal year 2023, it was $1.2 billion[4] Inventory Management - Inventory at year-end was $2.9 billion, reflecting a decrease of 10% year-over-year[5] Future Outlook - For fiscal year 2024, the company expects net sales to decrease by 1% to increase by 1%, with comparable sales projected in the range of 0% to 2%[9] Strategic Partnerships - The company plans to expand its partnership with Babies "R" Us to enhance its presence in the baby gear category, which is seen as a significant growth opportunity[3] Shareholder Returns - The company declared a quarterly cash dividend of $0.50 per share, payable on April 3, 2024[9]

For the quarterly period ended October 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition period from ________ to _________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-11084 KOHL'S CORPORATION (Exact name of registrant as specified in its charter) Wisconsin 39-1630919 (State or other jur ...

Financial Data and Key Metrics Changes - Net sales decreased by 5.2% in Q3 2023, with comparable sales down 5.5% [19][70] - Digital sales declined by 16.5%, with digital penetration at 26% [32] - SG&A expenses increased by 1.9% to $1.4 billion, slightly better than expectations [33] - Net income for the quarter was $59 million, with earnings per diluted share at $0.53 [50] - Gross margin improved to 38.9%, an increase of 158 basis points year-over-year [70] Business Line Data and Key Metrics Changes - Comparable beauty sales in Sephora shops opened in 2021 and 2022 increased more than 30% compared to last year [20] - Total beauty sales increased more than 70% in Q3, contributing to beauty share gains [20] - Home decor sales outperformed in stores, driven by new categories [36] - Pet business sales increased more than 40% in Q3 [24] - Apparel and footwear showed weakness in cold weather categories, but polished casual and dressy offerings performed well [25] Market Data and Key Metrics Changes - Store sales in the Midwest, Mid-Atlantic, and Northeast regions were down low- to mid-single digits due to weather impacts, while other regions saw low-single-digit increases [14] - The company experienced a divergence in performance based on regional weather conditions affecting demand [14] Company Strategy and Development Direction - The company is focused on four strategic priorities: enhancing customer experience, simplifying value strategies, managing inventory and expenses, and strengthening the balance sheet [2][29] - The company aims to position itself as a gifting destination, expanding the gifting section significantly for the holiday season [35] - The partnership with Sephora is expected to grow into a $2 billion business by 2025 [17] - The company is committed to reducing inventory levels and improving inventory turns [65] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a softer demand environment due to weather and macroeconomic pressures but expressed optimism about store performance and strategic initiatives [13][18] - The company expects to see the full impact of its strategic efforts in 2024, with a focus on improving sales momentum [80] - Management is confident in the ability to offset potential regulatory impacts on credit revenue through various initiatives [56][58] Other Important Information - The company ended the quarter with $190 million in cash and cash equivalents, and inventory was down 13% compared to last year [51] - Capital expenditures for the quarter were $157 million, with expectations for lower spending in 2024 [52] - The company remains committed to returning capital to shareholders, with a quarterly cash dividend of $0.50 per share [54] Q&A Session Summary Question: What is the path back to positive comps? - Management indicated that 2023 is focused on rebuilding and repositioning the company, with positive store performance providing a foundation for potential positive comps in 2024 [80] Question: Can you provide details on leadership changes? - Management discussed restructuring for closer alignment with store operations to better execute strategic priorities [82] Question: What is the outlook for promotions and merchandise margins? - Management expects a promotional environment during the holiday season, which is factored into guidance [90] Question: How is the Sephora partnership performing? - The Sephora partnership is driving significant traffic and sales, with 30% of customers being new to Kohl's [86][106] Question: What are the expectations for inventory management moving forward? - Management emphasized the importance of inventory management, aiming for increased inventory turns and a more agile approach to inventory levels [98][145]

Cautionary Statement Regarding Forward-Looking Information In addition, this presentation contains non-GAAP financial measures, including Free Cash Flow. Reconciliations of all non-GAAP measures to the most directly comparable GAAP measures are included in the Appendix of this presentation. Q3 2023 Results_________________ 16 Tom Kingsbury, Kohl's chief executive officer, said "Kohl's third quarter earnings reflect strong gross margin and expense management as well as additional progress against our strateg ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 29, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition period from ________ to _________ Commission file number 1-11084 KOHL'S CORPORATION (Exact name of registrant as specified in its charter) Wisconsin 39-1630919 (State or other jurisd ...

• Greater consistency in our marketing offers • Heightened focus on inventory control processes to increase inventory turns 9 $2 billion sales goal* * By 2025 2023 Outlook & Long-Term Strategy METRIC FULL YEAR GUIDANCE Focused on returning balance sheet to historical strength through balanced capital allocation strategy • Will continue to prioritize investments in the business, followed by our commitment to the dividend with excess cash deployed for debt reduction and share repurchases • We remain firmly co ...

Kohl's Corporation (NYSE:KSS) Q2 2023 Earnings Conference Call August 23, 2023 9:00 AM ET Company Participants Mark Rupe - Senior Vice President, Investor Relations Tom Kingsbury - Chief Executive Officer Jill Timm - Chief Financial Officer Conference Call Participants Robert Drbul - Guggenheim Securities Oliver Chen - TD Cowen Mark Altschwager - Baird Matthew Boss - JP Morgan Dana Telsey - Telsey Group Blake Anderson - Jefferies Charles Grom - Gordon Haskett Operator Good morning. My name is Rob, and I wil ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 29, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition period from ________ to _________ Commission file number 1-11084 KOHL'S CORPORATION (Exact name of registrant as specified in its charter) Wisconsin 39-1630919 (State or other juris ...

Kohl's Corporation (NYSE:KSS) Q1 2023 Results Conference Call May 24, 2023 9:00 AM ET Company Participants Mark Rupe - SVP, IR Tom Kingsbury - CEO Jill Timm - CFO Conference Call Participants Bob Drbul - Guggenheim Partners Gabby Carbone - Deutsche Bank Mark Altschwager - Baird Matthew Boss - JPMorgan Dana Telsey - Telsey Advisory Group Chuck Grom - Gordon Haskett Paul Lejuez - Citigroup Oliver Chen - Cowen Operator Hello and thank you for standing by. My name is Regina, and I will be your conference operat ...

Employee and Workforce - The average employee count in 2022 was approximately 97,000 associates, including 36,000 full-time and 61,000 part-time associates[23]. - The company maintains positive relations with associates, with no representation by a collective bargaining unit[23]. - The company is dependent on attracting and retaining quality associates, especially during the holiday season, amid intense competition[80]. - The company has a dedicated team for health, safety, and wellness initiatives to ensure a safe working environment[24]. - The company is focused on its Diversity, Equity, and Inclusion strategy, which includes measurable goals and accountability[25]. Financial Performance - Net sales for 2022 were $17,161 million, a decrease of 7.1% from $18,471 million in 2021[222]. - Total revenue for 2022 was $18,098 million, down 6.9% from $19,433 million in 2021[222]. - Operating income for 2022 was $246 million, significantly lower than $1,680 million in 2021[222]. - Net loss for 2022 was $(19) million, compared to a net income of $938 million in 2021[222]. - Basic and diluted net loss per share for 2022 was $(0.15), a decline from $6.41 and $6.32 per share in 2021 respectively[222]. - Net cash provided by operating activities in 2022 was $282 million, a significant decrease from $2,271 million in 2021[227]. - Total shareholders' equity at the end of 2022 was $3,763 million, down from $4,661 million in 2021[225]. Inventory and Merchandise - As of January 28, 2023, the company's merchandise inventories balance was $3.2 billion, an increase from $3.1 billion on January 29, 2022[210]. - Approximately 20% of the merchandise sold is sourced through a third-party purchasing agent, with the remainder from various domestic and international vendors[61]. - The company faces challenges in sourcing merchandise timely and cost-effectively, particularly for goods sourced outside the United States[61]. Debt and Financing - The company upsized its unsecured credit facility to a $1.5 billion senior secured, asset-based revolving credit facility in January 2023[82]. - During 2022, the company's credit ratings were reduced below investment grade, leading to increased interest rates on long-term debt[83]. - Long-term unsecured senior debt amounted to $1,637 million as of January 28, 2023, with an effective interest rate of 4.89%[266]. - The company was in compliance with all covenants of its various debt agreements as of January 28, 2023[269]. Legal and Regulatory - The company is actively monitoring legal and regulatory environments that may impact operations and financial performance[86]. - The company intends to vigorously defend against a class action lawsuit filed on September 2, 2022, alleging violations of the Securities and Exchange Act[307]. Marketing and Sales - Marketing costs for 2022 totaled $940 million, with net marketing costs amounting to $883 million, representing 4.9% of total revenue[259]. - The company recognized $158 million in net sales from gift cards redeemed during the current year, which were issued in prior years[254]. - The retail business is subject to seasonal influences, with sales and income typically higher during back-to-school and holiday seasons[38]. - Seasonal influences significantly impact the company's sales, with a major portion of sales occurring during the second half of the fiscal year[73]. Shareholder Returns - Dividends paid per common share increased to $2.00 in 2022 from $1.00 in 2021[225]. - The company repurchased a total of 17.9 million shares of common stock at an average purchase price of approximately $28 per share as part of a $3.0 billion share repurchase program[249][250]. Tax and Deferred Tax - Gross unrecognized tax benefits amounted to $219 million as of January 28, 2023[214]. - The effective tax rate for 2022 was 68.1%, significantly higher than 23.1% in 2021 due to favorable results from uncertain tax positions[288]. - The net deferred tax liability decreased to $83 million in 2023 from $167 million in 2022, a reduction of 50%[286]. - The company had net unrecognized tax benefits of $202 million as of January 28, 2023, down from $256 million as of January 29, 2022[291]. Leadership Changes - The company appointed Thomas Kingsbury as Chief Executive Officer effective February 2, 2023[309].