Kohl’s Corporation (NYSE:KSS). Kohl’s Corporation today reported
results for the quarter ended April 30, 2011.
First Quarter Results
Kohl’s Corporation reported first quarter diluted earnings per
share increased 14 percent to $0.73. Net income for the quarter was
$211 million, compared with $199 million ($0.64 per diluted share)
a year ago. Net sales were $4.2 billion, an increase of 3.1 percent
for the quarter. Comparable store sales for the quarter increased
1.3 percent.
Kevin Mansell, Kohl’s chairman, president and chief executive
officer, said, “We are pleased that we were able to achieve
double-digit growth in earnings per share through strong expense
management and continued gross margin improvement. We also
distributed our first-ever dividend of $0.25 per share and
repurchased $445 million of our shares within the quarter as we
remain committed to delivering excess cash to our
shareholders.”
Mansell added, “Our E-Commerce business remains on track to
achieve $1 billion in sales in 2011. To achieve that goal, we will
continue to invest in the business as we purchased a 3rd E-Commerce
fulfillment center in Maryland that will be on-line to support
Holiday 2011 peak season. We have strengthened our marketing for
the second quarter and believe that we will see pent-up demand for
seasonal businesses which would allow us to achieve a better comp
and even stronger financial results in the second quarter."
Quarterly Dividend
Declared
On May 11, 2011, Kohl's Board of Directors declared a quarterly
dividend on the Company's common stock of $0.25 per share. The
dividend is payable June 29, 2011 to shareholders of record at the
close of business on June 8, 2011.
Store Update
The Company ended the quarter with 1,097 stores in 49 states,
compared with 1,067 stores at the same time last year. During the
quarter, Kohl’s successfully opened nine stores and completed the
remodel of 30 stores. The Company expects to open an additional 31
stores and remodel an additional 70 stores later this year.
Earnings Guidance – Second Quarter and
Fiscal 2011
The Company provided initial guidance for the fiscal quarter
ending July 30, 2011 of $0.96 to $1.02 per diluted share. The
Company also updated its guidance for fiscal 2011 to $4.25 to $4.40
per diluted share, reflecting its first quarter results and
expected second quarter share repurchases, from its initial
guidance of $4.05 to $4.25 per diluted share.
First Quarter 2011 Earnings Conference
Call
The Company will host a first quarter earnings conference call
at 8:30 a.m. ET on May 12. The call can be accessed by dialing
(706) 902-0486 and referencing Conference ID 64890215, or via the
Company's web site at http://www.kohlscorporation.com/InvestorRelations/event-calendar.htm.
A replay of the call will also be accessible after approximately
9:30 a.m. ET on May 12 by dialing (800) 642-1687 or (706) 645-9291,
and using Conference ID 64890215. Replays of the call and web cast
will be available for thirty days.
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, including guidance on the Company’s targeted earnings. 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
Based in Menomonee Falls, Wis., Kohl’s (NYSE: KSS) is a
family-focused, value-oriented specialty department store offering
moderately priced, exclusive and national brand apparel, shoes,
accessories, beauty and home products in an exciting shopping
environment. Kohl’s operates 1,097 stores in 49 states with a
commitment to environmental leadership. In support of the
communities it serves, Kohl’s has raised more than $180 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 a
list of store locations and information, or for the added
convenience of shopping online, visit www.Kohls.com.
KOHL'S CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (In Millions, except per share data) (Unaudited)
Subject to Reclassification
Three
Months (13 Weeks) Ended % to % to
April
30, Net May 1, Net
2011 Sales 2010 Sales
Net sales
$ 4,162 $ 4,035 Cost of merchandise
sold
2,576 61.9 % 2,498 61.9 %
Gross margin
1,586 38.1 % 1,537 38.1 %
Operating expenses: Selling, general, and administrative
1,068 25.7 % 1,035 25.6 % Depreciation and
amortization
156 3.7 % 151 3.8 %
Operating income
362 8.7 % 351 8.7 %
Interest expense, net
29 0.7 %
31 0.8 % Income before income taxes
333
8.0 % 320 7.9 % Provision for income taxes
122 2.9 % 121 3.0 % Net
income
$ 211 5.1 % $ 199 4.9 %
Basic net income per share
$ 0.73 $ 0.65
Average number of shares
288 307 Diluted net income
per share
$ 0.73 $ 0.64 Average number of shares
290 309
KOHL'S CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (In Millions) (Unaudited)
Subject to Reclassification
April 30, May 1,
2011 2010
Assets
Current assets: Cash and cash equivalents
$
1,668 $ 2,388 Merchandise inventories
3,193 3,017
Deferred income taxes
87 91 Other
257
209 Total current assets
5,205 5,705 Property
and equipment, net
7,325 7,109 Long-term investments
250 318 Favorable lease rights, net
190 201 Other
assets
216 133 Total assets
$
13,186 $ 13,466
Liabilities and
Shareholders' Equity
Current liabilities: Accounts payable
$ 1,397
$ 1,412 Accrued liabilities
971 895 Income taxes payable
85 113 Current portion of long-term debt and capital leases
118 318 Total current liabilities
2,571 2,738 Long-term debt and capital leases
1,665 1,754 Deferred income taxes
452 380 Other
long-term liabilities
674 497 Shareholders' equity
7,824 8,097 Total liabilities and shareholders'
equity
$ 13,186 $ 13,466
KOHL'S
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In Millions) (Unaudited) Subject to
Reclassification
Three Months
(13 Weeks) Ended April 30, May 1,
2011
2010
Operating activities Net income
$
211 $ 199 Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization
156 151 Share-based compensation
15 14 Excess tax
benefits from share-based compensation
1 2 Deferred income
taxes
20 (16 ) Other non-cash revenues and expenses
5
9 Changes in operating assets and liabilities: Merchandise
inventories
(156 ) (92 ) Other current and long-term
assets
(21 ) 12 Accounts payable
260 224
Accrued and other long-term liabilities
(88 ) (146 )
Income taxes
(46 ) (70 ) Net
cash provided by operating activities
357
287
Investing activities Acquisition of
property and equipment
(226 ) (191 ) Sales of
investments in auction rate securities
41 4 Other
- (1 ) Net cash used in investing
activities
(185 ) (188 )
Financing activities Treasury stock purchases
(416
) (3 ) Long-term debt and capital lease payments
(305
) (5 ) Proceeds from stock option exercises
13 32
Excess tax benefits from share-based compensation
(1
) (2 ) Dividends paid
(72 ) -
Net cash provided by (used in) financing activities
(781 ) 22 Net increase
(decrease) in cash and cash equivalents
(609 ) 121
Cash and cash equivalents at beginning of period
2,277 2,267 Cash and cash
equivalents at end of period
$ 1,668 $ 2,388
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