Press Release | Source: Kohl's Corporation | Exhibit 99.1 |
| | |
Kohl's Corporation Reports Record Sales and Earnings for First Quarter
Thursday May 15, 4:02 pm ET
MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--May 15, 2003--Kohl's Corporation (NYSE:KSS -News). Kohl's Corporation reported record net sales and earnings for the first quarter ended May 3, 2003.
Net sales for the quarter were $2.1 billion, an increase of 13.2% over the same period a year ago. Net income for the quarter was $111 million, a 4.1% increase over the $107 million reported for the same quarter a year ago. Earnings per diluted share were $0.32, up from $0.31 per diluted share for the same quarter a year ago.
During the quarter, the Company successfully opened 35 new stores including entering the greater Los Angeles area with 28 stores; the San Antonio, TX market with 3 stores and a store each in Kalamazoo, MI; West Springfield, MA; Hooksett, NH; and Doylestown, PA.
In the third quarter, the Company plans to open approximately 45 new stores including its entries into Phoenix, AZ with 10 stores, Tucson, AZ with two stores, Flagstaff, AZ with one store and Las Vegas, NV with three stores. In 2004, the Company plans to open approximately 95 - 100 stores. The stores will be a combination of new stores in new markets and fill-in stores in existing markets. The Company will continue to expand its presence in the southwest region by opening additional stores in the greater Los Angeles area and entering the new markets of Sacramento, San Diego and Fresno.
At May 3, 2003, the Company operated 492 stores in 34 states compared to 420 stores in 32 states at the same time last year.
Earnings Conference Call
Investors will have the opportunity to listen to the first quarter earnings conference call today at 5:00 p.m. (EDT) by dialing 847-619-6368 ten minutes prior to the start of the call, or over the Internet through the Company's web site located athttp://www.kohls.com see (About Kohl's/ Company News/ Financial Links) or through Broadcast Networks' Vcall web site located athttp://www.vcall.com. To listen to the call, please go to either web site at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call. To access a 24-hour telephone replay of the call, simply dial 630-652-3018. Pass code: 7085990.
Los Angeles Investor Conference
The Company will host an investor conference in Los Angeles, California on May 20, 2003, with a presentation scheduled for approximately 5:30 p.m. (PST). Investors will have the opportunity to listen to the live web cast of the presentation through the Company's web site located at http://www.kohls.com see (About Kohl's/ Company News/ Financial Links) or through Broadcast Networks' Vcall web site located at http://www.vcall.com. To listen to the presentation, please go to either web site at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available for approximately 30 days after the conference date.
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 on Exhibit 99.1 to 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.
KOHL'S CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Unaudited)
| | 13 weeks ended | 13 weeks ended |
| | ---------------- | ---------------- |
| |
May 3, 2003 | % to Net Sales |
May 4, 2002 | % to Net Sales |
----------------------------------- |
(In thousands, except per share data) |
Net sales | $2,117,744 | | $1,870,588 | |
Cost of merchandise sold | 1,376,479 | 65.0% | 1,213,821 | 64.9% |
| | ------------------ | | ----------------- | |
Gross margin | 741,265 | 35.0% | 656,767 | 35.1% |
Operating expenses Selling, general, and administrative |
474,125 |
22.4% |
411,827 |
22.0% |
Depreciation and amortization | 55,417 | 2.6% | 43,969 | 2.4% |
Preopening expenses | 15,482 | 0.7% | 16,939 | 0.9% |
| | ------------------- | | ----------------- | |
Operating income | 196,241 | 9.3% | 184,032 | 9.8% |
| | | | | |
Interest expense, net | 17,766 | 0.9% | 12,615 | 0.6% |
| | ------------------- | | ----------------- | |
Income before income taxes | 178,475 | 8.4% | 171,417 | 9.2% |
Provision for income taxes | 67,462 | 3.2% | 64,796 | 3.5% |
| | ------------------- | | ----------------- | |
Net income | $111,013 | 5.2% | $106,621 | 5.7% |
| | ========== | | ========= | |
| | | | | |
| | | | | |
Earnings per share: | | | | |
Basic | | | | |
Net income per share | $ 0.33 | | $ 0.32 | |
Average number of shares | 338,013 | | 335,858 | |
Diluted | | | | |
Net income per share | $ 0.32 | | $ 0.31 | |
Average number of shares | 342,847 | | 342,615 | |
| | | | |
Kohl's Corporation
------------------
Condensed Consolidated Balance Sheet
------------------------------------
(Unaudited)
Subject to Reclassification
| | May 3, 2003 | May 4, 2002 |
| | ------------------ | ----------------- |
| | (In Thousands) |
Assets | | |
Current assets: | | |
Cash and cash equivalents | $94,674 | $100,541 |
Short-term investments | 153,205 | 25,000 |
Accounts receivable trade, net | 973,256 | 836,661 |
Merchandise inventories | 1,810,978 | 1,418,974 |
Deferred income taxes | 36,064 | 32,426 |
Other current assets | 75,350 | 69,047 |
| | ------------------ | ----------------- |
Total current asset | 3,143,527 | 2,482,649 |
| | ------------------ | ----------------- |
| | | |
Property and equipment, net | 2,824,510 | 2,327,094 |
Other assets | 105,223 | 87,072 |
Favorable lease rights, net | 181,495 | 173,012 |
Goodwill, net | 9,338 | 9,338 |
| | ------------------ | ----------------- |
Total assets | $6,264,093 | $5,079,165 |
| | ========== | ========== |
Liabilities and Shareholders' Equity | | |
Current liabilities: | | |
Accounts payable | $608,383 | $581,108 |
Accrued liabilities | 277,273 | 234,316 |
Income taxes payable | 38,909 | 37,905 |
Short-term debt | ------- | 5,000 |
Current portion of long-term debt | 357,919 | 11,509 |
| | ------------------ | ----------------- |
Total current liabilities | 1,282,484 | 869,838 |
| | | |
Long-term debt | 1,064,836 | 1,087,882 |
Deferred income taxes | 187,575 | 123,585 |
Other long-term liabilities | 66,524 | 53,041 |
Shareholders' equity | 3,662,674 | 2,944,819 |
| | ------------------ | ----------------- |
Total liabilities and shareholders' equity | $6,264,093 | $5,079,165 |
| | ========== | ========== |
| | | |
Kohl's Corporation
------------------
Condensed Consolidated Statements of Cash Flows
-----------------------------------------------
(Unaudited)
Subject to Reclassification
| | May 3, 2003 | May 4, 2002 |
| | ------------------------------------ |
Operating Activities | (In thousands) |
Net income | $111,013 | $106,621 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | |
Depreciation and amortization | 55,700 | 44,167 |
Amortization of debt discount | 2,403 | 2,323 |
Deferred income taxes | 36,253 | 29,223 |
Changes in operating assets and liabilities: | | |
Accounts receivable | 17,554 | (743) |
Merchandise inventories | (183,982) | (220,667) |
Other current assets | (31,831) | (27,619) |
Accounts payable | (86,365) | 102,238 |
Accrued and other long-term liabilities | (33,463) | (20,802) |
Income taxes payable | (78,409) | (57,063) |
| | ----------------- | --------------- |
Net cash used in operating activities | (191,127) | (42,322) |
| | | |
Investing activities | | |
Acquisition of property and equipment and favorable lease rights, net | (122,804) | (165,757) |
Net sales of short-term investments | 322,786 | 204,377 |
Other | (8,492) | (9,347) |
| | ----------------- | --------------- |
Net cash provided by investing activities | 191,490 | 29,273 |
| | | |
Financing Activities | | |
Proceeds from short-term debt | ----- | 5,000 |
Repayments of other long-term debt, net | (10,662) | (14,770) |
Payment of financing fees on debt | (24) | (37) |
Proceeds from stock option exercises | 14,912 | 16,675 |
| | ----------------- | --------------- |
Net cash provided by financing activities | 4,226 | 6,868 |
| | | |
Net increase (decrease) in cash and cash equivalents | 4,589 | (6,181) |
Cash and cash equivalents at beginning of period | 90,085 | 106,722 |
| | ----------------- | --------------- |
Cash and cash equivalents at end of period | $94,674 | $100,541 |
| | ========== | ========= |
| | | |
________________________________________
Contact:
Investor Relations Contact:
Kohl's Corporation
Arlene Meier, 262/703-1646
or
Media Contact:
Kohl's Corporation
Tawn Earnest, 262/703-6609
Source: Kohl's Corporation
