KSS Kohls Corporation

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