August 16, 2007
KOHL'S CORPORATION REPORTS 20.3 PERCENT INCREASE IN SECOND QUARTER EARNINGS PER SHARE OF $0.83
Management Raises Fiscal 2007 Guidance
MENOMONEE FALLS, WI, August 16, 2007 — Kohl’s Corporation (NYSE:KSS) today reported net sales and earnings for the second quarter ended August 4, 2007.
Kohl’s Corporation second quarter earnings per diluted share increased 20.3 percent to $0.83 from $0.69 in last year’s period. Net income was $269.2 million compared with $232.4 million a year ago, an increase of 15.9 percent. Net sales increased to $3.6 billion from $3.3 billion a year ago, an increase of 8.7 percent for the quarter. Comparable store sales increased 1.3 percent for the same period.
For the six months ended August 4, 2007, net income increased 19.7 percent to $478.2 million or $1.48 per diluted share, compared to $399.6 million or $1.17 per diluted share for the six months ended July 29, 2006. Net sales increased 10.2 percent to $7.2 billion from $6.5 billion a year ago. Comparable store sales increased 2.5 percent for the same period.
Larry Montgomery, Kohl’s chairman and chief executive officer, said, “After a strong start to the quarter in May, our sales performance was affected by the performance of our seasonal businesses in June and July. Strength in our other businesses remained consistent and our early read on back-to-school is positive. We continue to achieve improvement in our operating margin in excess of both our short-term and long-range goals.”
Montgomery added, “I am very proud of our associates and the role they played in delivering these results 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.”
The Company issued its initial guidance for the third and fourth quarter of fiscal 2007. Assuming a comparable sales increase of 2% to 4%, the Company would expect earnings per diluted share of $0.67 to $0.71 in the third quarter. For the fourth quarter, assuming comparable sales of 1% to 3%, the Company would expect earnings per diluted share of $1.63 to $1.69. This would result in earnings per diluted share of $3.77 to $3.87 for fiscal 2007 versus its previous guidance of $3.75 to $3.87 per diluted share.
During the first half of the 2007 fiscal year, the Company successfully opened 17 new stores, including its entry into the Idaho market with three stores.
The Company now operates 834 stores in 46 states, compared with 749 stores in 43 states at the same time last year.
The Company will open 95 stores in the third and fourth quarters for a total of 112 new stores for fiscal 2007.
Second Quarter Earnings Conference Call
Investors will have the opportunity to listen to the conference call scheduled for 5:00 PM EDT on August 16 by dialing (913) 905-3179 (Pass Code: 3406251) ten minutes prior to the start of the call. A replay of the conference call will be accessible from 8 PM EDT August 16 through midnight September 14, 2007, by dialing (719) 457-0820 (Pass Code: 3406251).
In addition, the call will be web cast live over the Internet through the Company’s web site located at http://www.kohls.com (see “Investor Relations” / “Calendar of Events”), or through Premiere Global’s web site at https://cis.premconf.com/sc/scw.dll/usr?cid=vlllrcrxrdzvsnsns. To listen to the call, please go to either web site at least 15 minutes early to register, download and install any necessary audio software. The web cast will be available for 30 days on both web sites.
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.
Based in Menomonee Falls, Wis., Kohl’s (NYSE: KSS) is a family-focused, value-oriented specialty department store offering moderately priced, exclusive and national brand apparel, shoes, accessories, beauty and home products in an exciting shopping environment. A company committed to the communities it serves, Kohl’s operates 834 stores in 46 states and has raised more than $85 million for children’s initiatives nationwide through its Kohl’s Cares for Kids® philanthropic program. For a list of store locations and information, or for the added convenience of shopping online, visit www.kohls.com.
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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