March 1, 2007
KOHL'S CORPORATION REPORTS RECORD EARNINGS FOR FOURTH QUARTER AND FISCAL 2006
- Fourth Quarter Net Income Increase of 29.3% and EPS of $1.48 per Diluted Share
- Fiscal 2006 Net Income Increase of 31.7% and EPS of $3.31 per Diluted Share
MENOMONEE FALLS, Wis., March 1, 2007 — Kohl's Corporation (NYSE:KSS) today reported record results for the three and twelve months ended February 3, 2007.
Fourth Quarter Results
Kohl’s Corporation reported a 29.3 percent increase in net income for the quarter ended February 3, 2007. Net income was $484.6 million, or $1.48 per diluted share, compared with $374.9 million or $1.08 per diluted share a year ago. Earnings per share increased 37 percent over the fourth quarter of fiscal 2005. Net sales increased to $5.4 billion from $4.7 billion a year ago, an increase of 16.7 percent for the quarter. On a comparable 13-week basis, comparable store sales increased 4.1 percent.
Fiscal 2006 consists of 53 weeks, resulting in a 14-week fiscal fourth quarter. To provide a better measure of the Company’s business trends, the reported comparable store sales results for the quarter and the year compare the period ended January 27, 2007 to the period ended January 28, 2006. The impact of the 53rd week on total sales was approximately $200 million.
2006 Fiscal Year Results
For the twelve months ended February 3, 2007, net income increased 31.7 percent to $1.1 billion or $3.31 per diluted share, compared with $842.0 million or $2.43 per diluted share a year ago. Earnings per share increased 36% in fiscal 2006 versus fiscal 2005. Net sales increased 16.0 percent to $15.5 billion from $13.4 billion a year ago. On a comparable 52-week basis, comparable store sales increased 5.9 percent.
Larry Montgomery, Kohl’s chairman and chief executive officer, said, “We are very pleased with the top-and bottom-line results for the quarter and the year as we delivered consistent sales performance across all regions and all lines of business. We saw continued gross margin improvements as we benefited from improved inventory flow and allocation and increased penetration from our private and exclusive brands. We achieved leverage on the expense line for the year while continuing to invest for our future growth. In 2007, we will continue our focus on merchandise content, marketing, inventory management and the in-store shopping experience to drive in new customers and continue to take market share.”
Montgomery added, “I am very proud of our over 114,000 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 2007.”
Expansion Update
During the year, Kohl’s successfully opened 85 stores including entries into the Portland, OR, Seattle, WA and Tampa, FL markets. The Company ended the year with 817 stores in 45 states, compared with 732 stores in 41 states at the end of 2005.
2007 Earnings Guidance
The Company issued its initial guidance for fiscal 2007. Based on assumptions of a total sales increase of 9% to 11% and a comparable sales increase of 2% to 4%, the Company would expect earnings per diluted share of $3.68 to $3.84 for the year.
Fourth Quarter Earnings Conference Call
Investors will have the opportunity to listen to the conference call scheduled for 5:00 PM EST on March 1 by dialing (913) 905-3179 (Pass Code: 6593348) ten minutes prior to the start of the call. A replay of the conference call will be accessible for 30 days, from 8 PM EST March 1 through midnight March 30, 2007, by dialing (719) 457-0820 (Pass Code: 6593348).
In addition, the call will be webcast live over the Internet through the Company’s website located at http://www.kohls.com (see “Investor Relations” / “Calendar of Events”), or through Premiere Global’s website at https://cis.premconf.com/sc/scw.dll/usr?cid=vlllrcrxrddvwwzcd. To listen to the call, please go to either website at least 15 minutes early to register, download, and install any necessary audio software. The webcast will be available for 30 days on both websites.
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 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.
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Click here for Kohl's Condensed Consolidated Statements of Income, Condensed
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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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