Kohl's Corporation Reports Financial Results

Kevin Mansell, Kohl's chairman, chief executive officer and president, said, “I am very pleased with our fourth quarter and full year results, which exceeded the high end of our most recent guidance by $0.11 per share. Over the course of the year, we saw consistent, sustained improvement in sales trends which culminated in a 6.3% increase in our fourth quarter comp sales. We improved our merchandise margins through strong inventory management and improved promotional and permanent markdowns. All areas effectively managed their expenses. And, we ended the year with 7% less inventory.  I am very proud of our team and the role they played in these results and want to thank them for their hard work, loyalty and dedication.”

Impact of 53rd Week

The retail calendar for fiscal January 2018 included a fifth week, resulting in a 14-week fiscal fourth quarter and a 53-week year. During this 53^rd week, total sales were approximately $170 million; selling, general and administrative expenses were approximately $30 million; and interest was approximately $3 million. The 53^rd week increased the Company’s net income by approximately $15 million and its diluted earnings per share by approximately $0.10 for the year.

Dividend

On February 28, 2018, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.61 per share, an 11% increase over its prior dividend. The dividend is payable March 28, 2018 to shareholders of record at the close of business on March 14, 2018.

Store Update

Kohl's ended the fiscal year with 1,158 Kohl's stores in 49 states. During 2017, the Company opened four Kohl's stores, relocated one Kohl's store and opened one Off/Aisle location.

Initial 2018 Earnings Guidance

The Company expects earnings per diluted share of $4.95 to $5.45 for fiscal 2018. This guidance is based on the following assumptions:

• Comparable sales change of 0% to 2%
• Total sales change of (1)% to 1%
• Gross margin as a percentage of sales increase of 5 to 10 basis points over 2017
• SG&A dollars increase of 1% to 2% over 2017
• Depreciation expense of $960 million
• Interest expense of $280 million
• Effective tax rate of 24% to 25%
• $300-$400 million in share repurchases
• Capital expenditures of approximately $700 million

Kohl’s plans to shift its earnings reporting cadence in fiscal 2018 and expects to report its first quarter 2018 financial results during the week of May 20, 2018.

Fourth Quarter 2017 Earnings Conference Call

Kohl's will host its quarterly earnings conference call at 8:30 am ET on March 1, 2018. The phone number for the conference call is (800) 230-1085. Replays of the call will be available for 30 days by dialing (800) 475-6701.  The conference ID is 444352. The conference call and replays are also accessible via the Company's web site at http://corporate.kohls.com/investors/events-and-presentations.

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 2018 earnings guidance. 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.

About Kohl's

Kohl’s (NYSE: KSS) is a leading omnichannel retailer with more than 1,100 stores in 49 states. With a commitment to inspiring and empowering families to lead fulfilled lives, Kohl’s offers amazing​​ national and exclusive brands, incredible savings and an easy shopping experience in our stores, online at Kohls.com and on Kohl's mobile app. ​Throughout its history, Kohl's has given nearly $600 million to support communities nationwide. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com or follow @KohlsNews on Twitter.