May 12, 2005
KOHL'S CORPORATION REPORTS EARNINGS FOR FIRST QUARTER
- First Quarter Net Income Increase of 21.0% and EPS of $0.36
per Diluted Share
- Company Began Expensing of Stock Options in First Quarter
of Fiscal 2005
MENOMONEE FALLS, Wis., May 12, 2005 — Kohl's Corporation (NYSE:
KSS) today reported results for the three months ended April 30,
2005.
First Quarter Results
Kohl's Corporation reported a 21.0 percent increase in net income
for the quarter ended April 30, 2005. Net income was $124.7 million,
or $0.36 per diluted share, compared with $103.1 million or $0.30
per diluted share a year ago. Both periods reflect the Company's
decision to early adopt expensing of stock options and the correction
of the method used to account for leases.
Net sales for the quarter increased to $2.7 billion from $2.4 billion
a year ago, an increase of 15.2 percent. Comparable store sales
increased 3.7 percent for the same period.
Larry Montgomery, Kohl's Chairman and Chief Executive Officer,
said, "I am pleased with our performance in the first quarter
on both the top and bottom line. We achieved both our targeted comparable
store sales growth and net income growth for the quarter. Looking
forward, we are targeting comparable store sales growth to be in
the mid-single digit range for the remainder of the year. We continue
to target earnings growth of approximately 20% over our restated
2004 results and expect our earnings per diluted share for fiscal
2005 to be in the $2.40 - $2.50 range."
Montgomery added, "I appreciate the role that our associates
played in helping the Company achieve a successful quarter. It is
because of their hard work and dedication to serving our customers
that you can 'expect great things' from Kohl's."
Accounting for Stock-Based Compensation
Separately, Kohl's Corporation decided to early adopt, in the first
quarter of 2005, Statement of Financial Accounting Standards (SFAS)
No. 123R, which modifies SFAS No. 123, "Accounting for Stock-Based
Compensation." This revised accounting standard requires that
all stock-based compensation, including grants of employee stock
options, be accounted for using a fair-value-based method. The Company
has elected to use the modified retrospective method which requires
restatement of prior years' results. The prior period financial
statements will be restated under the provisions of SFAS 123R to
recognize compensation cost in the amounts previously reported in
the pro forma footnote disclosures. The restatements for each of
the fiscal 2004 quarters will be included in Kohl's 2005 quarterly
filings on Forms 10-Q. The restated income statements are also attached
to today's quarterly earnings release.
Expansion Update
During the first quarter, the Company successfully opened 32
new stores, including its entry into the Buffalo, NY market with
three stores; adding seven stores in the Southeast region; six stores
in the Midwest region and four stores each in the Mid-Atlantic,
Northeast, South Central and Southwest regions.
The Company now operates 669 stores in 40 states, compared with
589 stores in 38 states at the same time last year.
The Company will open one store in the Chicago, IL market in May
and expects to open approximately 62 additional stores in the third
fiscal quarter. In August, the Company will open four new stores.
The remaining stores, including new entries into Orlando and Jacksonville,
Florida, will open in October.
First Quarter Conference Call
Investors will have the opportunity to listen to the conference
call today at 5:00 PM (EDT) by dialing (847) 619-6368 ten minutes
prior to the start of the call, over the Internet through the Company's
Website located at http://www.kohls.com (see "Company News"),
or through Broadcast Network's vcall Website located at
http://www.vcall.com.
To listen to the call, please go to the Website 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
of the call will be available for 36 hours at (630) 652-3018, Pass
Code: 11410364#.
Sanford C. Bernstein & Co., LLC Conference
Larry Montgomery, Kohl's Chairman and Chief Executive Officer,
presents at the Sanford C. Bernstein & Co., LLC — Twenty-First
Annual Strategic Decisions Conference 2005 at The Waldorf Astoria,
New York City, on June 1 at 8am (EDT). The presentation will be
Webcast live over the Internet via the Company's Website located
at www.kohls.com (see "Investor Relations", "Calendar
of Events" and scroll to June). For those who cannot listen
to the live broadcast, a seven-day replay will be available shortly
after the broadcast. To access the replay, simply visit the link
above.
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 sales and
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 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.
# # #
Click
here
for Kohl's Condensed Consolidated Statements of Income, Condensed
Consolidated Balance Sheets
and Condensed Consolidated Statements of Cash Flows.
Available in Adobe Acrobat format.
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Investor Relations Contact:
Wes McDonald, Chief Financial Officer, (262) 703-1893
Public Relations Contact:
Vicki Shamion, Director of Public Relations, (262) 703-1464
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