Kohl's Corporation Reports First Quarter Financial Results
MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--May 14, 2015-- Kohl’s Corporation (NYSE:KSS). Kohl’s Corporation today reported results for the quarter ended May 2, 2015.
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| | | | | | | | | |
| | Quarter |
| ($ in millions) | 2015 | | 2014 | | Change |
| Sales | $ | 4,123 |
| | $ | 4,070 |
| | 1.3% |
| Comparable store sales | 1.4 | % | | (3.4 | )% | | - |
| Gross margin | 36.9 | % | | 36.8 | % | | 17 bp |
| Net income | $ | 127 |
| | $ | 125 |
| | 2% |
| Diluted earnings per share | $ | 0.63 |
| | $ | 0.60 |
| | 5% |
Kevin Mansell, Kohl's chairman, chief executive officer and president, said, "Sales were modestly below our original expectations for the quarter, but accelerated in the March/April combined period after a weak February. We are very pleased with our earnings results, with a more balanced promotional calendar driving merchandise margin combined with strong expense control."
Dividend
On May 13, 2015, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.45 per share. The dividend is payable June 24, 2015 to shareholders of record at the close of business on June 10, 2015.
Store Update
Kohl’s opened two new stores during the quarter. The Company now operates 1,164 stores in 49 states, compared with 1,160 stores at the same time last year.
First Quarter 2015 Earnings Conference Call
Kohl's will host its quarterly earnings conference call at 8:30 am ET on May 14, 2015. The phone number for the conference call is (800) 230-1074. 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 346894. The conference call and replays are also accessible via the Company's web site at http://www.kohlscorporation.com/InvestorRelations/event-calendar.htm.
About Kohl's
Kohl’s (NYSE: KSS) is a leading specialty department store with 1,164 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 its communities, Kohl’s has raised more than $274 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)
YouTube (http://www.youtube.com/Kohls)
Contacts
Investor Relations:
Wes McDonald, Senior Executive Vice President and Chief Financial Officer, (262) 703-1893
Media:
Bevin Bailis, SVP, PR and Communications, (262) 703-1464
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| | | | | | | |
| KOHL'S CORPORATION |
| CONSOLIDATED STATEMENTS OF INCOME |
| (In Millions, except per share data) |
| (Unaudited) |
| | | | |
| | Three Months Ended |
| | May 2, 2015 | | May 3, 2014 |
| Net sales | $ | 4,123 |
| | $ | 4,070 |
|
| Cost of merchandise sold | 2,600 |
| | 2,574 |
|
| | | | |
| Gross margin | 1,523 |
| | 1,496 |
|
| | | | |
| Operating expenses: | | | |
| Selling, general, and administrative | 1,016 |
| | 1,000 |
|
| Depreciation and amortization | 227 |
| | 216 |
|
| | | | |
| Operating income | 280 |
| | 280 |
|
| | | | |
| Interest expense, net | 84 |
| | 85 |
|
| | | | |
| Income before income taxes | 196 |
| | 195 |
|
| Provision for income taxes | 69 |
| | 70 |
|
| | | | |
| Net income | $ | 127 |
| | $ | 125 |
|
| | | | |
| Basic net income per share | $ | 0.64 |
| | $ | 0.60 |
|
| Average number of shares | 200 |
| | 206 |
|
| | | | |
| Diluted net income per share | $ | 0.63 |
| | $ | 0.60 |
|
| Average number of shares | 202 |
| | 208 |
|
| | | | |
| As a percent of net sales: | | | |
| Gross margin | 36.9 | % | | 36.8 | % |
| Selling, general and | | | |
| administrative expenses | 24.6 | % | | 24.6 | % |
| Operating income | 6.8 | % | | 6.9 | % |
| Net income | 3.1 | % | | 3.1 | % |
|
| | | | | | | | |
| KOHL'S CORPORATION |
| CONSOLIDATED BALANCE SHEETS |
| (In Millions) |
| (Unaudited) |
| | | | | |
| | | May 2,
2015 | | May 3,
2014 |
| Assets | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 1,195 |
| | $ | 717 |
|
| Merchandise inventories | | 4,165 |
| | 3,981 |
|
| Deferred income taxes | | 129 |
| | 137 |
|
| Other | | 340 |
| | 304 |
|
| | | | | |
| Total current assets | | 5,829 |
| | 5,139 |
|
| | | | | |
| Property and equipment, net | | 8,518 |
| | 8,677 |
|
| Other assets | | 216 |
| | 298 |
|
| | | | | |
| Total assets | | $ | 14,563 |
| | $ | 14,114 |
|
| | | | | |
| Liabilities and Shareholders' Equity | | | | |
| Current liabilities: | | | | |
| Accounts payable | | $ | 1,645 |
| | $ | 1,382 |
|
| Accrued liabilities | | 1,140 |
| | 1,078 |
|
| Income taxes payable | | 87 |
| | 73 |
|
| Current portion of capital lease | | | | |
| and financing obligations | | 113 |
| | 112 |
|
| | | | | |
| Total current liabilities | | 2,985 |
| | 2,645 |
|
| | | | | |
| Long-term debt | | 2,793 |
| | 2,792 |
|
| Capital lease and financing obligations | | 1,840 |
| | 1,919 |
|
| Deferred income taxes | | 358 |
| | 339 |
|
| Other long-term liabilities | | 570 |
| | 562 |
|
| Shareholders' equity | | 6,017 |
| | 5,857 |
|
| | | | | |
| Total liabilities and shareholders' equity | | $ | 14,563 |
| | $ | 14,114 |
|
|
| | | | | | | |
| KOHL'S CORPORATION |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (In Millions) |
| (Unaudited) |
| |
| | Three Months Ended |
| | May 2,
2015 | | May 3,
2014 |
| Operating activities | | | |
| Net income | $ | 127 |
| | $ | 125 |
|
| Adjustments to reconcile net income to net cash | | | |
| provided by operating activities: | | | |
| Depreciation and amortization | 227 |
| | 216 |
|
| Share-based compensation | 14 |
| | 11 |
|
| Excess tax benefits from share-based compensation | (9 | ) | | (2 | ) |
| Deferred income taxes | (23 | ) | | 5 |
|
| Other non-cash revenues and expenses | 10 |
| | 5 |
|
| Changes in operating assets and liabilities: | | | |
| Merchandise inventories | (349 | ) | | (105 | ) |
| Other current and long-term assets | 28 |
| | 15 |
|
| Accounts payable | 134 |
| | 17 |
|
| Accrued and other long-term liabilities | (69 | ) | | (44 | ) |
| Income taxes | 12 |
| | (64 | ) |
| | | | |
| Net cash provided by operating activities | 102 |
| | 179 |
|
| | | | |
| Investing activities | | | |
| Acquisition of property and equipment | (176 | ) | | (176 | ) |
| Other | 1 |
| | 4 |
|
| | | | |
| Net cash used in investing activities | (175 | ) | | (172 | ) |
| | | | |
| Financing activities | | | |
| Treasury stock purchases | (147 | ) | | (167 | ) |
| Shares withheld for taxes on vested restricted shares | (18 | ) | | (14 | ) |
| Dividends paid | (90 | ) | | (80 | ) |
| Proceeds from financing obligations | — |
| | 3 |
|
| Capital lease and financing obligation payments | (27 | ) | | (29 | ) |
| Proceeds from stock option exercises | 134 |
| | 24 |
|
| Excess tax benefits from share-based compensation | 9 |
| | 2 |
|
| | | | |
| Net cash used in financing activities | (139 | ) | | (261 | ) |
| | | | |
| Net decrease in cash and cash equivalents | (212 | ) | | (254 | ) |
| Cash and cash equivalents at beginning of period | 1,407 |
| | 971 |
|
| | | | |
| Cash and cash equivalents at end of period | $ | 1,195 |
| | $ | 717 |
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