February 23, 2006
KOHL'S CORPORATION REPORTS RECORD EARNINGS FOR FOURTH
QUARTER AND FISCAL 2005
- Fourth Quarter Net Income Increase of 17.6% and EPS of $1.08
per Diluted Share
- Fiscal 2005 Net Income Increase of 19.7% and EPS of $2.43
per Diluted Share
MENOMONEE FALLS, Wis., February 23, 2006 — Kohl's Corporation
today reported record results for the three and twelve months ended
January 28, 2006.
Fourth Quarter Results
Kohl's Corporation reported a 17.6 percent increase in net income
for the quarter ended January 28, 2006. Net income was $374.9 million,
or $1.08 per diluted share, compared with $318.8 million or $0.92
per diluted share a year ago. Net sales increased to $4.7 billion
from $4.1 billion a year ago, an increase of 14.1 percent for the
quarter. Comparable store sales increased 2.7 percent for the same
period.
2005 Fiscal Year Results
For the twelve months ended January 28, 2006, net income increased
19.7 percent to $842.0 million or $2.43 per diluted share, compared
with $703.4 million or $2.04 per diluted share a year ago. Net sales
increased 14.5 percent to $13.4 billion from $11.7 billion a year
ago. Comparable store sales increased 3.4 percent for the same period.
The results for fiscal 2005 reflect the Company's decision to adopt
expensing of stock options. In accordance with the modified retrospective
method, fiscal 2004's results have been restated.
Larry Montgomery, Kohl's chairman and chief executive officer,
said, "We made tremendous progress on our 2005 initiatives
and are very pleased with the bottom-line results for the quarter
and the year. We concentrated on inventory management, resulting
in lower clearance levels and the best gross margin performance
in our history. We have made great strides in broadening our assortment
and are receiving positive feedback from our shoppers. We are attracting
new customers and believe we are building momentum as a brand. In
2006, we will continue to focus on these initiatives: merchandise
content, marketing, inventory management and the in-store shopping
experience. These are the building blocks of a great retail strategy."
Montgomery added, "I am very proud of our over 107,000 associates
and the role they played in delivering another record year and want
to thank them for their hard work, loyalty and dedication to serving
our customers. They are the reason you can continue to 'Expect Great
Things' from Kohl's in 2006."
Expansion Update
During the year, Kohl's successfully opened 95 stores including
entries into the Orlando and Jacksonville, FL markets and the Buffalo,
NY market.
The Company ended the year with 732 stores in 41 states, compared
with 637 stores in 40 states at the end of 2004.
Kohl's continues to target opening 500 additional stores over the
next five years. The Company plans to open approximately 80-85 stores
in fiscal 2006 with approximately 17 stores opening during the first
quarter, including its initial entry into the Pacific Northwest
in the Portland, OR market.
Fourth Quarter Earnings Conference Call
Investors will have the opportunity to listen to the fourth
quarter earnings conference call today at 5:00 PM (EST) 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 (see "Company News"),
or through Broadcast Networks' Vcall Website located at http://www.vcall.com.
To listen to the call, please go to either Website at least 15 minutes
early to register, download and install any necessary audio software.
For those who cannot listen to the live broadcast, a telephone
replay will be available beginning shortly after the call and continuing
through March 23, 2006. To access this replay, simply dial (630)
652-3018, and use Pass Code: 13584558.
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 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, Vice President of Public Relations, (262) 703-1464
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