KOHLS Corp - FORM 8-K - EX-99.1 - PRESS RELEASE DATED MAY 12, 2016 - May 12, 2016

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Kohl's Corporation Reports First Quarter Financial Results

MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--May 12, 2016-- Kohl’s Corporation (NYSE:KSS). Kohl’s Corporation today reported results for the quarter ended April 30, 2016.

($ in millions)
2016
 
2015
 
Change
Sales
$
3,972

 
$
4,123

 
(3.7)%
Comparable store sales
(3.9
)%
 
1.4
%
 
-
Gross margin
35.5
 %
 
36.9
%
 
(139) bp
Selling, general, and administrative expenses

$
1,008

 
$
1,016

 
(1)%
Reported
 
 
 
 
 
Net income
$
17

 
$
127

 
(87)%
Diluted earnings per share
$
0.09

 
$
0.63

 
(86)%
Excluding impairments, store
 
 
 
 
 
closing and other costs
 
 
 
 
 
Net income
$
58

 
$
127

 
(55)%
Diluted earnings per share
$
0.31

 
$
0.63

 
(50)%

Kevin Mansell, Kohl's chairman, chief executive officer and president, said, "First quarter sales were challenging.  Despite the sales environment, we were able to manage our gross margin and inventory levels consistent with our expectations as we took the markdowns necessary to clear excess inventory.  We managed our expenses effectively throughout the quarter as every area contributed to our savings versus our plan."

Dividend
On May 11, 2016, the Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.50 per share.  The dividend is payable June 22, 2016 to shareholders of record at the close of business on June 8, 2016.

Store Update
Kohl’s ended the quarter with 1,167 stores in 49 states, compared with 1,164 stores at the same time last year.

First Quarter 2016 Earnings Conference Call
Kohl's will host its quarterly earnings conference call at 8:30 am ET on May 12, 2016. The phone number for the conference call is (800) 230-1074. Replays of the call will be available for 30 days by dialing (800) 475-6701. The conference ID for both the live call and the replay is 386534. The conference call and replays are also accessible via the Company's web site at http://www.kohlscorporation.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. 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 specialty department store with more than 1,100 stores in 49 states. With a commitment to inspiring and empowering families to lead fulfilled lives, the company offers amazing national and exclusive brands, incredible savings and inspiring shopping experiences in-store, online at Kohls.com and via mobile devices. Committed to its communities, Kohl’s has raised nearly $300 million for children’s initiatives nationwide through its Kohl’s Cares® cause merchandise program, which operates under Kohl's Cares, LLC, a wholly-owned subsidiary of Kohl's Department Stores, Inc. For additional information about Kohl’s philanthropic and environmental initiatives, visit www.Kohls.com/Cares.  For a list of store locations and information, or for the added convenience of shopping online, visit www.Kohls.com.

Connect with Kohl’s: 
Facebook (http://www.facebook.com/Kohls)
Twitter (http://twitter.com/Kohls)
Google+ (http://plus.google.com/+Kohls)
Pinterest (http://pinterest.com/Kohls)
Instagram (http://instagram.com/Kohls)
YouTube (http://www.youtube.com/Kohls)

Contacts
Investor Relations:
Wes McDonald, Chief Financial Officer, (262) 703-1893

Media:
Jennifer Johnson, VP Corporate Communications, (262) 703-5241




KOHL'S CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Millions, except per share data)
(Unaudited)
 
 
 
 
 
Three Months Ended
 
April 30,
2016
 
May 2,
2015
Net sales
$
3,972

 
$
4,123

Cost of merchandise sold
2,560

 
2,600

 
 
 
 
Gross margin
1,412

 
1,523

 
 
 
 
Operating expenses:
 
 
 
Selling, general, and administrative
1,008

 
1,016

Depreciation and amortization
234

 
227

Impairments, store closing and other costs
64

 
—

 
 
 
 
Operating income
106

 
280

 
 
 
 
Interest expense, net
79

 
84

 
 
 
 
Income before income taxes
27

 
196

Provision for income taxes
10

 
69

 
 
 
 
Net income
$
17

 
$
127

 
 
 
 
Basic net income per share
$
0.09

 
$
0.64

Average number of shares
183

 
200

 
 
 
 
Diluted net income per share
$
0.09

 
$
0.63

Average number of shares
184

 
202

 
 
 
 
As a percent of net sales:
 
 
 
Gross margin
35.5
%
 
36.9
%
Selling, general and administrative expenses
25.4
%
 
24.6
%
Operating income
2.7
%
 
6.8
%
Net income
0.4
%
 
3.1
%
 
 
 
 
Excluding impairments, store closing
 
 
 
and other costs
 
 
 
Net income
$
58

 
$
127

Diluted net income per share
$
0.31

 
$
0.63

As a percent of net sales:
 
 
 
Operating income
4.3
%
 
6.8
%
Net income
1.5
%
 
3.1
%






KOHL'S CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Millions)
(Unaudited)
 
 
 
 
 
 
 
April 30,
2016
 
May 2,
2015
Assets
 
 
 
 
Current assets:
 
 
 
 
  Cash and cash equivalents
 
$
423

 
$
1,195

  Merchandise inventories
 
4,084

 
4,165

  Other
 
348

 
338

 
 
 
 
 
  Total current assets
 
4,855

 
5,698

 
 
 
 
 
Property and equipment, net
 
8,230

 
8,518

Other assets
 
219

 
237

 
 
 
 
 
  Total assets
 
$
13,304

 
$
14,453

 
 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
$
1,346

 
$
1,645

Accrued liabilities
 
1,126

 
1,140

Income taxes payable
 
48

 
87

Current portion of capital lease
 
 
 
 
  and financing obligations
 
127

 
113

 
 
 
 
 
  Total current liabilities
 
2,647

 
2,985

 
 
 
 
 
Long-term debt
 
2,793

 
2,780

Capital lease and financing obligations
 
1,770

 
1,840

Deferred income taxes
 
239

 
275

Other long-term liabilities
 
558

 
556

Shareholders' equity
 
5,297

 
6,017

 
 
 
 
 
  Total liabilities and shareholders' equity
 
$
13,304

 
$
14,453







KOHL'S CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
(Unaudited)
 
Three Months Ended
 
April 30,
2016
 
May 2,
2015
Operating activities
 
 
 
Net income
$
17

 
$
127

Adjustments to reconcile net income to net cash
 
 
 
provided by operating activities:
 
 
 
Depreciation and amortization
234

 
227

Share-based compensation
12

 
14

Excess tax benefits from share-based compensation
—

 
(9
)
Deferred income taxes
(18
)
 
(23
)
Other non-cash revenues and expenses
7

 
10

Impairments, store closing and other costs
64

 
—

Changes in operating assets and liabilities:
 
 
 
Merchandise inventories
(44
)
 
(349
)
Other current and long-term assets
(15
)
 
28

Accounts payable
95

 
134

Accrued and other long-term liabilities
(125
)
 
(69
)
Income taxes
(87
)
 
12

Net cash provided by operating activities
140

 
102

 
 
 
 
Investing activities
 
 
 
Acquisition of property and equipment
(177
)
 
(176
)
Other
3

 
1

Net cash used in investing activities
(174
)
 
(175
)
 
 
 
 
Financing activities
 
 
 
Treasury stock purchases
(126
)
 
(147
)
Shares withheld for taxes on vested restricted shares
(12
)
 
(18
)
Dividends paid
(91
)
 
(90
)
Capital lease and financing obligation payments
(31
)
 
(27
)
Proceeds from stock option exercises
6

 
134

Excess tax benefits from share-based compensation
—

 
9

Proceeds from financing obligations
4

 
—

Net cash used in financing activities
(250
)
 
(139
)
 
 
 
 
Net decrease in cash and cash equivalents
(284
)
 
(212
)
Cash and cash equivalents at beginning of period
707

 
1,407

Cash and cash equivalents at end of period
$
423

 
$
1,195



KOHLS Corp Reports