EXHIBIT 99.1
First Call, US1
Release: March 9, 1999 at 9:00 (EST)
Kohl's Corporation Reports Record Earnings for 1998
MENOMONEE FALLS, WI., Mar. 9/PRNewswire/--Kohl's
Corporation (NYSE:KSS) reported record sales and
earnings for the fourth quarter and year ended January
30, 1999.
Net sales for the fiscal year ended January 30,
1999 increased 20.3% to $3.7 billion compared with $3.1
billion in fiscal 1997. On a comparable store basis,
sales increased 7.9%. Net income for the year increased
36.1% to $192.3 million compared with $141.3 million a
year ago. Diluted earnings per share for the year
increased 29.7% to $1.18 compared to $0.91 for fiscal
1997.
For the thirteen week quarter ended January 30,
1999, sales increased 19.6% to $1.3 billion from $1.1
billion in the fourth quarter of 1997, while comparable
sales increased 6.4%. Net income for the fourth quarter
ended January 30, 1999 increased 29.6% to $94.1 million
compared with $72.6 million in the fourth quarter of
1997. Diluted earnings per share for the quarter
increased 28.9% to $0.58 per share compared to $0.45
per share in fourth quarter of 1997.
The LIFO adjustment for the fourth quarter was a
pretax credit of $8.5 million or $0.03 per share after
taxes compared to a pretax credit of $5.0 million or
$0.02 per share after taxes in fourth quarter 1997.
For the year, the LIFO adjustment was a pretax credit
of $2.9 million or $0.01 per share after tax as
compared to no impact in fiscal 1997.
William Kellogg, Chairman, said, "1998 was an
exceptional year for Kohl's. It demonstrates the results
of the hard work and dedication of our 34,000
Associates. We successfully opened 32 more stores and
are very well positioned to continue our rapid
expansion. We will expand into Denver, Colorado; St.
Louis, MO and Dallas/Ft. Worth, TX in 1999 and into the
New York metropolitan area in 2000."
Larry Montgomery, Chief Executive Officer and Vice
Chairman, stated, "We are very proud of our achievements
in 1998. Our total sales increased 20.3% while
comparable store sales increased 7.9%. Our FIFO gross
margin rate increased to 33.5% from 33.1% a year ago.
We reduced selling, general and administrative expenses
as a percent of sales to 22.0% from 22.2% a year ago.
As a result, our operating income increased 30.5% over
last year."
Kohl's plans to open 40-45 stores in 1999. Thirteen
stores will open in the first quarter: two stores in the
York, PA market; two additional stores in the Washington,
D.C. market; two additional stores in the Chicago, IL
market; two additional stores in the Detroit, MI market;
and additional stores in the Philadelphia, PA; Omaha, NE;
Goshen, IN; Lexington, KY and Indianapolis, IN markets.
Kohl's will enter the Denver, Colorado market with five
stores in the second quarter. In August, Kohl's plans to
enter the St. Louis, MO market with six stores and open
additional stores in the Richmond, VA; Washington, D.C. and
Hickory, NC markets. In October, Kohl's plans to enter the
Dallas/Ft. Worth, TX market with 10 to 13 stores and open
additional stores in the Harrisburg, PA; Chicago, IL;
Lansing, MI; Grand Rapids, MI and Denver, CO markets.
Kohl's is headquartered in Menomonee Falls, WI and
currently operates 213 family-oriented specialty
department stores in 22 states.
Contact: Arlene Meier, CFO - (414) 703-1646
###
Kohl's Corporation
Consolidated Statements of Income
Quarter Quarter 12 Months 12 Months
Ended Ended Ended Ended
January January January January
30, 31, 30, 31,
1999 1998 1999 1998
(In thousands, except per share data)
Net sale $1,289,548 $1,077,808 $3,681,763 $3,060,065
Cost of merchandise
sold (a) 864,754 729,347 2,447,301 2,046,468
Gross margin 424,794 348,461 1,234,462 1,013,597
Selling, general and
administrative
expenses 244,882 206,732 810,162 678,793
Depreciation and
amortization 18,666 15,567 70,049 57,380
Pre-opening expense 797 - 16,388 18,589
Operating income 160,449 126,162 337,863 258,835
Interest expense, net 5,487 5,367 21,114 23,772
Income before income
taxes 154,962 120,795 316,749 235,063
Income taxes 60,900 48,197 124,483 93,790
Net income $94,062 $72,598 $192,266 $141,273
Basic:
Earnings per share $0.59 $0.46 $1.22 $0.93
Average number of
shares 158,248 157,686 158,067 152,471
Diluted:
Earnings per share $0.58 $0.45 $1.18 $0.91
Average number of
shares 163,178 161,665 162,633 156,077
Number of stores open at
end of period 213 182 213 182
(a) Includes LIFO charge
(credit) $(8,519) $(5,049) $(2,862) $(93)
Kohl's Corporation
Consolidated Balance Sheet
January 30, January 31,
1999 1998
(In thousands)
Assets
Current assets:
Cash and cash equivalents $ 2,858 $ 44,161
Short-term investments 26,736 -
Accounts receivable, net 270,704 239,617
Merchandise inventories 617,362 515,790
Deferred income taxes 14,412 6,615
Other current assets 7,366 5,259
Total current assets 939,438 811,442
Property and equipment, net 933,011 749,649
Other assets 25,027 12,643
Favorable lease rights, net 13,681 15,849
Goodwill, net 24,938 30,138
Total assets $1,936,095 $1,619,721
Liabilities and Shareholders'
Equity
Current liabilities:
Accounts payable $212,926 $150,679
Accrued liabilities 117,200 95,185
Income taxes payable 48,572 38,482
Current portion of
long-term debt 1,533 1,845
Total current liabilities 380,231 286,191
Long-term debt 310,912 310,366
Deferred income taxes 53,787 45,104
Other long-term liabilities 28,386 23,278
Shareholders' equity 1,162,779 954,782
Total liabilities and
shareholders' equity $1,936,095 $1,619,721