August 10, 2006
KOHL'S CORPORATION REPORTS SECOND QUARTER EARNINGS PER SHARE OF $0.69 - AN INCREASE OF 27.8 PERCENT

MENOMONEE FALLS, Wis., August 10, 2006 — Kohl's Corporation today reported net sales and earnings for the second quarter ended July 29, 2006.

Kohl's Corporation second quarter earnings per diluted share increased 27.8 percent to $0.69 per diluted share from $0.54 per diluted share in last year's period. Net income increased 24.1 percent to $232.4 million from $187.2 million. Net sales for the quarter increased 14.0 percent to $3.3 billion from $2.9 billion a year ago while comparable store sales increased 5.5 percent.

For the six months ended July 29, 2006, net income increased 28.1 percent to $399.6 million or $1.17 per diluted share, compared to $311.9 million or $0.90 per diluted share for the six months ended July 30, 2005. Net sales increased 15.0 percent to $6.5 billion from $5.6 billion a year ago. Comparable store sales increased 6.2 percent for the same period.

Larry Montgomery, Kohl's chairman and chief executive officer, said, "We are very pleased with our performance for the second quarter and in the first half of the year. We exceeded our guidance for both sales and net income. We continue to see consistency in all lines of business and all regions of the country. At the same time, we achieved improvement in our gross margin rate and experienced significant expense leverage on our sales increase. We also made great progress on our share repurchase program, buying over $1 billion of our stock during the quarter."

Montgomery added, "Our associates are critical to our success as a company and I 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."

Share Repurchase
During the second quarter, the Company repurchased approximately 18.4 million shares of its common stock at an average price of $55.74. Year-to-date, the Company has repurchased approximately $1.1 billion of its shares as part of its previously announced $2 billion share repurchase program.

Earnings Guidance
As a result of its second quarter performance and its outlook for the fall season, the Company is raising its full-year earnings guidance from $2.91 to $3.02 per diluted share to $3.04 to $3.13 per diluted share for fiscal 2006. This would result in an increase in earnings per diluted share of 25 percent to 29 percent over last year. The Company issued guidance for the third fiscal quarter of $0.53 to $0.56 per diluted share and for the fourth fiscal quarter of $1.36 to $1.42 per diluted share.

Expansion Update
The Company now operates 749 stores in 43 states, compared with 670 stores in 40 states at the same time last year.

The Company plans to open 68 stores in the fall season of fiscal 2006 with 65 opening in October and the remainder in November. This will complete the opening of 85 stores in fiscal 2006. The Company will make its initial entry into the state of Washington with four stores in the Seattle market and will continue its expansion into Florida, entering the Tampa market with three stores.

Second Quarter Earnings Conference Call
Investors will have the opportunity to listen to the second quarter earnings conference call today at 5:00 PM (EDT) by dialing (913) 905-3179, using Pass Code 4486225, at least ten minutes prior to 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 Premiere Global Services' Website at https://cis.premconf.com/sc/scw.dll/usr?cid=vlllrzlcmszvmccz. To listen to the call, please go to either Website at least fifteen minutes early to register, download and install any necessary audio software. A replay of the call will be available for 30 days. To access this replay, dial (719) 457-0820, and use Pass Code: 4486225.

Investor Conference
The Company will host an investor conference in Tampa, Florida on October 4, 2006, which will include a store tour and management presentation. The presentation will be web cast and the audio replay will be available until November 3rd. Further details will be available in the Company's August sales release.

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 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.

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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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