April 26, 2006
KOHL'S HOLDS ANNUAL SHAREHOLDERS MEETING; DISCUSSES RECORD EARNINGS
FOR 2005 AND OUTLINES FUTURE GROWTH PLANS
MENOMONEE FALLS, Wis., April 26, 2006 At the company's shareholders'
meeting today, Kohl's (NYSE:KSS) executives discussed 2005 financial
performance and outlined future growth plans designed to continue
to deliver long-term, profitable growth.
2005 Financial Review
For the twelve months ended January 28, 2006, net sales increased
14.5% to $13.4 billion compared with $11.7 billion a year ago. Comparable
store sales increased 3.4% over the prior year. Net income increased
19.7% to $842.0 million or $2.43 per diluted share, compared with
$703.4 million or $2.04 per diluted share a year ago.
Underscoring the company's commitment to long term profitable growth,
over the past five years, net income has increased at a compounded
annual growth rate of 19.7%.
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.
2010 Long Term Growth
The company expects to open approximately 500 stores over the next
five years, operating more than 1,200 by 2010. Net income is expected
to increase 15-20% per year during this same time frame.
2005 and 2006 Expansion Update
In 2005, the company successfully opened 95 new stores, including
entries into Orlando and Jacksonville, FL markets and the Buffalo,
NY market. At the same time, over 12,000 new jobs were created in
communities all across the company. At the end of fiscal 2005, the
company operated 732 stores in 41 states compared with 637 stores
in 40 states.
Building on that momentum, the company plans to open 85 stores
in fiscal 2006. This spring, the company opened 17 of the 85 stores,
including entry into the Northwest, with four stores in Portland,
OR. In the fall, the company plans to enter Seattle, WA.
For fiscal 2006, the company is planning 17 stores each in the
Midwest and Southeast regions, 15 stores in the Southwest region,
11 stores in the South-central region, 10 stores in the Northwest,
eight stores in the Mid-Atlantic region and seven stores in the
Northeast region. The company believes that all regions have significant
To support the expansion in the Southwest region as well as our
entry into the Pacific Northwest, the company will open a distribution
facility (DC) in Patterson, CA in June 2006. The new DC will have
the capacity to support 110 stores.
Annual Meeting Business
The company also announced the preliminary results of the shareholder
votes on the four agenda items.
Kohl's shareholders reelected Jay H. Baker, Steven A. Burd, Kevin
Mansell and Peter S. Sommerhauser to the board of directors for
additional three-year terms, with each director receiving more than
88% of the votes cast.
Shareholders ratified the appointment of Ernst & Young LLP
as independent auditors, receiving more than 97% of the votes cast.
A company proposal to amend Kohl's Articles of Incorporation to
declassify the Board of Directors received affirmative votes from
the holders of approximately 81% of the company's outstanding shares.
This proposal was included by the company in response to a 2005
A non-binding shareholder proposal concerning the voting standard
used to elect director nominees received approximately 61% of the
Based in Menomonee Falls, Wis., Kohl's is a family-focused, value-oriented
specialty department store offering moderately priced national and
exclusive brand apparel, shoes, accessories, home and beauty products
in an exciting shopping environment. Kohl's operates 749 stores
in 43 states. For a list of store locations and information, or
for the added convenience of shopping online, visit Kohl's Website
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 in part 1A of Kohl's annual report, which is
expressly incorporated herein by reference, and other factors as
may periodically be described in Kohl's filings with the SEC.
Kohl's Investor Relations: Wes McDonald, 262-703-1893
Media: Vicki Shamion, 262-703-1464