Kohl’s Corporation (NYSE:KSS) today reported results for the
three and six month periods ended July 29, 2017.
Three
Months Ended Six Months Ended ($ in
millions)
2017 2016
Change 2017 2016
Change Total sales $ 4,144 $ 4,182
(0.9)% $ 7,987 $ 8,154 (2.0)%
Comparable store sales (0.4 )% (1.8 )% — (1.5 )% (2.8 )% —
Gross margin 39.4 % 39.5 % (6) bp 38.0 % 37.6 % 39 bp
Selling, general, and administrative expenses $ 983 $ 986
(0.3)% $ 1,958 $ 1,994 (2)%
Reported Net income $ 208 $ 140
49% $ 274 $ 157 75% Diluted earnings per share $ 1.24 $ 0.77 61% $
1.62 $ 0.86 88%
Excluding non-recurring items* Net income $
208 $ 221 (6)% $ 274 $ 279 (2)% Diluted earnings per share $
1.24 $ 1.22 2% $ 1.62
$ 1.53 6%
*Excludes Impairments, store closing and other costs in
2016.
Kevin Mansell, Kohl's chairman, chief executive officer and
president, said, "The traffic momentum that we saw in the combined
March/April period accelerated in the second quarter. Though
transactions for the quarter were lower than last year, July
transactions increased. We are also excited by the sequential sales
trend improvement in all our lines of business, all geographic
regions, and in both our proprietary and national brand portfolios.
Gross margin and SG&A expenses were consistent with our
expectations and we are seeing benefits from our ongoing inventory
initiatives and the early stages of our cost-saving
initiative."
Dividend
On August 8, 2017, the Kohl's Board of Directors declared a
quarterly cash dividend on the Company's common stock of $0.55 per
share. The dividend is payable September 20, 2017 to shareholders
of record at the close of business on September 6, 2017.
Store Update
Kohl’s ended the quarter with 1,154 Kohl's stores in 49 states
compared with 1,150 Kohl's stores at the same time last year.
Kohl's also operates 12 FILA Outlets and four Off/Aisle clearance
centers.
Second Quarter 2017 Earnings Conference
Call
Kohl's will host its quarterly earnings conference call at 8:30
am ET on August 10, 2017. The phone number for the conference call
is (800) 230-1085. 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 413290. The conference call and replays are
also accessible via the Company's web site at
http://corporate.kohls.com/investors/events-and-presentations.
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 omnichannel retailer with more than 1,100
stores in 49 states. With a commitment to inspiring and
empowering families to lead fulfilled lives, Kohl’s
offers amazing national and exclusive brands, incredible
savings and an easy shopping experience in our stores, online
at Kohls.com and on Kohl's mobile app. Throughout its
history, Kohl's has given nearly $600 million to support
communities nationwide. For a list of store locations or to
shop online, visit Kohls.com. For more information about
Kohl’s impact in the community and how to join our winning team,
visit Corporate.Kohls.com.
KOHL’S CORPORATION CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
Six Months Ended July 29,
July 30, July 29, July 30, (Dollars
in Millions, Except per Share Data) 2017
2016 2017 2016 Net sales
$4,144 $4,182
$7,987 $8,154 Cost of merchandise sold
2,511 2,532
4,956
5,092 Gross margin
1,633 1,650
3,031 3,062 As a
percent of net sales
39.4% 39.5%
38.0% 37.6%
Operating expenses: Selling, general, and administrative
983
986
1,958 1,994 As a percent of net sales
23.7% 23.6%
24.5% 24.5% Depreciation and amortization
243 234
482 468 Impairments, store closing and other costs
— 128
— 192 Operating
income
407 302
591 408 Interest expense, net
75 78
150 157 Income
before income taxes
332 224
441 251 Provision for
income taxes
124 84
167
94 Net income
$208 $140
$274 $157
Average number of shares:
Basic
168 180
169 182 Diluted
168 181
169 182
Net income per share: Basic
$1.24 $0.77
$1.62 $0.86 Diluted
$1.24 $0.77
$1.62 $0.86
Excluding non-recurring items* Net
income
$208 $221
$274 $279 Diluted net income per
share
$1.24 $1.22
$1.62
$1.53
*Excludes Impairments, store closing and other costs in
2016.
KOHL’S CORPORATION CONSOLIDATED BALANCE
SHEETS
(Unaudited)
July 29, July 30,
(Dollars in Millions) 2017 2016
Assets Current assets: Cash and cash equivalents
$552
$700 Merchandise inventories
3,853 3,928 Other
335 327 Total current assets
4,740 4,955
Property and equipment, net
8,068 8,192 Other assets
230 213 Total assets
$13,038
$13,360
Liabilities and Shareholders' Equity Current
liabilities: Accounts payable
$1,370 $1,375 Accrued
liabilities
1,069 1,146 Income taxes payable
43 155
Current portion of capital lease and financing obligations
133 127 Total current liabilities
2,615 2,803
Long-term debt
2,796 2,793 Capital lease and financing
obligations
1,637 1,709 Deferred income taxes
271 184
Other long-term liabilities
691 656 Shareholders' equity
5,028 5,215 Total liabilities and
shareholders' equity
$13,038 $13,360
KOHL’S CORPORATION CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
Six Months Ended July 29,
July 30, (Dollars in Millions) 2017
2016 Operating activities Net income
$274 $157 Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization
482 468 Share-based compensation
21 22 Deferred
income taxes
(2) (74) Impairments, store closing and other
costs
— 57 Other non-cash revenues and expenses
(5)
14 Changes in operating assets and liabilities: Merchandise
inventories
(53) 114 Other current and long-term assets
32 8 Accounts payable
(137) 124 Accrued and other
long-term liabilities
(172) (69) Income taxes
(64) 25 Net cash provided by operating activities
376 846
Investing activities
Acquisition of property and equipment
(399) (340) Proceeds
from sale of property and equipment
16 3 Net
cash used in investing activities
(383) (337)
Financing activities Treasury stock purchases
(250)
(267) Shares withheld for taxes on vested restricted shares
(12) (14) Dividends paid
(186) (182) Capital lease
and financing obligation payments
(67) (63) Proceeds from
stock option exercises
— 6 Proceeds from financing
obligations
— 4 Net cash used in financing
activities
(515) (516) Net decrease in cash
and cash equivalents
(522) (7) Cash and cash equivalents at
beginning of period
1,074 707 Cash and cash
equivalents at end of period
$552 $700
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170810005238/en/
Kohl’s CorporationInvestor Relations:Jill Timm, (262)
703-2203jill.timm@kohls.comorMedia:Jen Johnson, (262)
703-5241jen.johnson@kohls.com
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