February 28, 2008
KOHL'S CORPORATION REPORTS EARNINGS
FOR FOURTH QUARTER AND FISCAL 2007
MENOMONEE FALLS, Wis., February 28, 2008 — Kohl’s Corporation (NYSE:KSS) today reported results for the quarter and year ended February 2, 2008.
Fourth Quarter Results
Kohl’s Corporation reported net income for the quarter ended February 2, 2008 of $411.7 million, or $1.31 per diluted share, compared with $484.6 million, or $1.48 per diluted share, a year ago. Net sales were $5.5 billion, an increase of 0.7 percent for the quarter. Comparable store sales for the quarter decreased 4.0 percent.
Fiscal 2006 consisted 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 periods ended February 2, 2008 to January 27, 2007. The impact of the 53rd week on total sales was approximately $200 million.
2007 Fiscal Year Results
For the fiscal year ended February 2, 2008, net income was $1.1 billion, or $3.39 per diluted share, compared with $1.1 billion or $3.31 per diluted share, a year ago. Net sales were $16.5 billion for the year, an increase of 5.6 percent over $15.6 billion a year ago. On a comparable 52-week basis, comparable store sales decreased 0.8 percent.
Larry Montgomery, Kohl’s chairman and chief executive officer, said, “2007 proved to be a difficult year for most retailers, and Kohl’s was no exception. Despite a challenging year which saw deep discounts across the industry, our gross margin increased over the prior year as a result of improved inventory management and increased penetration from our private and exclusive brands. Additionally, we achieved record sales for our sixteenth consecutive year as a public company and increased our diluted earnings per share over last year.”
Montgomery added, “We expect 2008 to be a challenging year from a macro-economic perspective. We are planning conservatively in our sales expectations, inventory levels and expenses. We will continue to invest the necessary resources to ensure our profitable growth over the long-run through investments in people and technology.”
During the year, Kohl’s successfully opened 112 stores. The Company ended the year with 929 stores in 47 states, compared with 817 stores in 45 states at the end of 2006. The Company expects to open approximately 70-75 stores in fiscal 2008, with 28 stores opening this spring.
2008 Earnings Guidance
The Company issued its initial guidance for fiscal 2008. Based on assumptions of a total sales increase of 5% to 8% and a comparable sales change of 0% to negative 3%, the Company expects earnings per diluted share of $3.15 to $3.50 for the year. For the first fiscal quarter, the Company expects earnings per diluted share of $0.50 to $0.54.
Fourth Quarter Earnings Conference Call
Investors will have the opportunity to listen to the conference call scheduled for 5:00 PM EST on February 28 by dialing (706) 902-0486 (CONFERENCE ID 34081229). The replay of the conference call will also be accessible from 8 PM EST February 28 until midnight March 28, 2008, by dialing (706) 645-9291 (CONFERENCE ID 34081229).
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"). To participate in the conference, register at http://audioevent.mshow.com/341853/, using CONFERENCE ID 34081229, at least ten minutes prior to the call to download and install any necessary audio software. The Web cast will be available for 30 days.
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 929 stores in 47 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.
Click here for Kohl's Condensed Consolidated Statements of Income, Condensed
Consolidated Balance Sheets
and Condensed Consolidated Statements of Cash Flows.
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Investor Relations: Wes McDonald, Chief Financial Officer, (262) 703-1893
Media: Vicki Shamion, Vice President – Public Relations, (262) 703-1464