August 11, 2005
KOHL'S CORPORATION REPORTS SECOND QUARTER NET INCOME INCREASE OF 27.4% AND EARNINGS PER SHARE OF $0.54

MENOMONEE FALLS, Wis., August 11, 2005 — Kohl's Corporation today reported net sales and earnings for the second quarter ended July 30, 2005.

Kohl's Corporation reported a 27.4 percent increase in net income for the quarter ended July 30, 2005. Net income was $187.2 million, or $0.54 per diluted share, compared to $146.9 million or $0.43 per diluted share a year ago. Net sales for the quarter increased 15.6 percent to $2.9 billion from $2.5 billion a year ago. Comparable store sales increased 5.1 percent for the same period.

For the six months ended July 30, 2005, net income increased 24.8 percent to $311.9 million or $0.90 per diluted share, compared to $250.0 million or $0.73 per diluted share for the six months ended July 31, 2004. Net sales increased 15.4 percent to $5.6 billion from $4.9 billion a year ago. Comparable store sales increased 4.4 percent for the same period.

Second quarter and year-to-date earnings in the current year were impacted by two items. The Company's income taxes were favorably impacted by $4.9 million due to the resolution of certain state tax matters. The Company's gross margin was favorably impacted by $2.4 million due to a decision to change its method of accounting for inventory from the last in, first out method (LIFO) to the first in, first out (FIFO) method.

Last year's results reflect the Company's decision to adopt expensing of stock options, which began in the first quarter of fiscal 2005. In accordance with the modified retrospective method, the prior year's results for both the quarter and year-to-date have been restated.

Larry Montgomery, Kohl's chairman and chief executive officer, said, "I am pleased with our performance in the second quarter and for the first half on both the top and bottom lines. As expected, we continued gaining momentum in comparable store sales in the second quarter, achieving the high end of our guidance for both comp store sales and EPS for the quarter. Looking forward, we continue to target comparable store sales growth in the mid-single digit range for the fall season. For the year, we continue to target earnings growth of approximately 20% over last year and now expect our earnings per diluted share for fiscal 2005 to be in the $2.42 - $2.50 range."

Expansion Update
During the first half of the year, the Company successfully opened 33 new stores, including its entry into the Buffalo, NY market with three stores; adding seven stores in the Southeast region; seven stores in the Midwest region and four stores each in the Mid-Atlantic, Northeast, South Central and Southwest regions.

The Company now operates 670 stores in 40 states, compared with 589 stores in 38 states at the same time last year.

The Company plans to open another 62 stores in the third quarter of fiscal 2005, four in August and 58 in October. The Company plans to enter the Orlando, FL market with six stores and the Jacksonville, FL market with three stores. In addition, the Company will add 15 stores in the Midwest region, nine stores each in the South Central and the Southwest regions, eight stores in the Mid-Atlantic region, seven stores in the Northeast region and five stores in the Southeast region. In total, the Company plans to open 95 stores in fiscal 2005.

Second 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. In addition, the call will be Webcast live over the Internet through the Company's Website located at http://www.kohls.com (Select "Investor Relations"/ "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 will be available for 36 hours at (630) 652-3018, Pass Code: 12195903.

Investor Conference
The Company will host an investor conference in Boston, Massachusetts on August 17, 2005, with a presentation scheduled for approximately 12:30 PM (EDT). Investors will have the opportunity to listen to the live Webcast of the presentation through the Company's Website located at http://www.kohls.com (Select "Investor Relations"/ "Company News"/Scroll down to August 2005), or through Broadcast Network's vcall Website located at http://www.vcall.com. To listen to the presentation, please go to either 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 will be available through September 17, 2005.

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.
Download Adobe Acrobat Reader for free, now.

Investor Relations Contact:
Wes McDonald, Chief Financial Officer, (262) 703-1893

Public Relations Contact:
Vicki Shamion, Director of Public Relations, (262) 703-1464

Recent Headlines
Click on any headline below to view the full release.