Wall Street expects a year-over-year decline in earnings on lower revenues when Kohl's (KSS) reports results for the quarter ended April 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 30. On the other ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Kohl's (KSS) , which belongs to the Zacks Retail - Regional Department Stores industry.When looking at the last two reports, this department store operator has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 45.28%, on average, in the last two quarters.For the most recent quarter, Kohl's was expected to post earn ...

Employment and Workforce - The company employed an average of approximately 96,000 associates in 2023, including about 36,000 full-time and 60,000 part-time associates[21]. - The company offers a 100% match (up to 5% of pay) in its 401(k) Savings Plan after one year of employment for eligible associates[28]. - The company has implemented an education benefit that provides fully-funded tuition, books, and fees for associates pursuing high school completion and select degrees[29]. - The company is committed to its Diversity, Equity, and Inclusion strategy, which is embedded into its acquisition and retention practices for all associates[24]. Financial Performance - The company reported net sales of $16.586 billion for the fiscal year 2023, a decline of 3.3% compared to $17.161 billion in 2022[222]. - The total revenue for 2023 was $17.476 billion, down 3.4% from $18.098 billion in 2022[222]. - The operating income for 2023 was $717 million, significantly improved from $246 million in 2022[222]. - The net income for 2023 was $317 million, a recovery from a net loss of $19 million in 2022[222]. - Basic net income per share for 2023 was $2.88, recovering from a loss of $0.15 per share in 2022[261]. Assets and Liabilities - As of February 3, 2024, the company's merchandise inventories balance was $2.9 billion, down from $3.2 billion in the previous year, representing a decrease of approximately 9.7%[210]. - The company’s total assets decreased to $14.009 billion from $14.345 billion year-over-year, a decline of approximately 2.3%[221]. - The company’s total shareholders' equity increased to $3.893 billion from $3.763 billion, reflecting a growth of about 3.4%[221]. - Total property and equipment, net, as of February 3, 2024, was $7,720 million, down from $7,926 million in the previous year[236]. - Accrued liabilities decreased slightly to $1,201 million in 2024 from $1,220 million in 2023[243]. Debt and Credit Facilities - The company has a $1.5 billion revolving credit facility, with outstanding borrowings of $92 million as of February 3, 2024[198]. - The company is subject to interest rate risk due to $600 million of notes issued in April 2020, with $113 million remaining outstanding, and $500 million of notes issued in March 2021[197]. - The estimated fair value of unsecured senior long-term debt was $1.3 billion as of February 3, 2024, down from $1.6 billion as of January 28, 2023[266]. - Long-term unsecured senior debt outstanding was $1.638 billion as of February 3, 2024, compared to $1.637 billion as of January 28, 2023[265]. - Outstanding borrowings under the revolving credit facility were $92 million as of February 3, 2024, up from $85 million as of January 28, 2023[268]. Tax and Legal Matters - The company had gross unrecognized tax benefits of $200 million as of February 3, 2024, indicating potential tax liabilities[214]. - The provision for income taxes for fiscal year 2023 was $56 million, compared to a tax benefit of $39 million in 2022 and a provision of $281 million in 2021[283]. - The effective tax rate for fiscal year 2023 was 15.1%, significantly lower than 68.1% in 2022 and 23.1% in 2021[283]. - The company intends to vigorously defend against a putative class action lawsuit filed in September 2022, with claims related to financial reporting and governance[300]. - Management believes that ongoing legal proceedings and claims will not have a material adverse effect on the Consolidated Financial Statements[301]. Marketing and Sales - Women's category sales were $4,281 million, down 8.0% from $4,654 million in 2022[251]. - Net marketing costs for 2023 were $796 million, representing 4.6% of total revenue, a slight decrease from 4.9% in 2022[258]. Store Operations - The company operated 1,174 stores and a website, selling a range of moderately-priced private and national brand products[227]. - The company opened 254 full-size Sephora shops in 2023, bringing the total to 860 as of the end of the fiscal year[274]. Shareholder Returns - Kohl's Corporation declared a quarterly cash dividend of $0.50 per share[302]. - The dividend will be paid on April 3, 2024, to shareholders of record at the close of business on March 20, 2024[302].

Financial Data and Key Metrics Changes - Net sales decreased by 1.1% in Q4 and 3.4% for the year, with comparable sales down 4.3% in Q4 and 4.7% for the year [27][69] - Gross margin in Q4 was 32.4%, an increase of 937 basis points year-over-year, driven by reduced clearance markdowns and lower freight expenses [43] - Net income for Q4 was $186 million, with earnings per diluted share at $1.67, while for the full year, net income was $317 million, and earnings per diluted share was $2.85 [45] Business Line Data and Key Metrics Changes - Store comparable sales were down 1% in Q4 but flat for the year, marking the best performance since 2010, driven by strong results from Sephora and home categories [69] - Digital sales, excluding the 53rd week, declined by approximately 10% in Q4 and 15% for the full year, with digital accounting for 35% of Q4 net sales [42] - Other revenue, primarily from the credit business, grew by 1% in Q4 but declined by 5% for the full year [70] Market Data and Key Metrics Changes - The company expects comparable sales growth in 2024 to be flat to up 2%, with key drivers including continued growth in Sephora and new initiatives in home and baby gear categories [6][14] - The partnership with Babies R Us is anticipated to significantly expand the company's presence in the baby gear category, contributing to a projected $2 billion sales opportunity over several years [12][31] Company Strategy and Development Direction - The company is focused on four strategic priorities: enhancing customer experience, simplifying value strategies, managing inventory and expenses, and strengthening the balance sheet [5][19] - The expansion of Sephora at Kohl's is a key initiative, with plans to open approximately 140 smaller format shops and roll out Sephora to the rest of the chain by 2025 [11][30] - The company aims to improve its apparel and footwear assortments by introducing new brands and enhancing product relevance [34][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance for 2024, citing strong momentum from various initiatives and the successful performance of Sephora [52][88] - The company is aware of potential headwinds from the recent CFPB late fee ruling but has strategies in place to mitigate its impact, including the scaling of the co-brand credit card [26][76] - Management highlighted the importance of traffic generation and customer engagement as critical factors for future growth [111] Other Important Information - The company reduced inventory by 10% year-over-year and plans to continue this trend in 2024 [18][66] - Capital expenditures for 2024 are expected to be approximately $500 million, focusing on store improvements and new partnerships [74] Q&A Session Summary Question: Can you elaborate on the confidence in achieving positive comp store sales growth this year? - Management expressed excitement about the home business and the investments being made in underpenetrated categories, indicating a strong setup for growth in 2024 [79] Question: How are you thinking about the pace and build to the $2 billion sales opportunity? - The company anticipates incremental growth in underpenetrated categories over several years, with the Babies R Us partnership contributing in the fall season [58][59] Question: What are the expectations for Sephora comps for the year? - Management noted that Sephora continues to perform well, driving traffic and new customer acquisition, with plans to add new brands to the assortment [116]

Financial Performance - Fourth quarter net sales decreased 1.1% year-over-year to $5.7 billion, while fiscal year 2023 net sales decreased 3.4% to $16.6 billion[4] - Comparable sales for the fourth quarter decreased 4.3%, and for the fiscal year 2023, comparable sales decreased 4.7%[5] - Gross margin as a percentage of net sales increased by 937 basis points to 32.4% in the fourth quarter, and for the fiscal year, it increased by 347 basis points to 36.7%[5] - Operating income for the fourth quarter was $299 million, compared to a loss of $302 million in the prior year, representing an increase of 1,005 basis points[5] - Net income for the fourth quarter was $186 million, or $1.67 per diluted share, compared to a net loss of $273 million, or ($2.49) per diluted share in the prior year[5] - Operating cash flow for the fourth quarter was $789 million, and for the fiscal year 2023, it was $1.2 billion[4] Inventory Management - Inventory at year-end was $2.9 billion, reflecting a decrease of 10% year-over-year[5] Future Outlook - For fiscal year 2024, the company expects net sales to decrease by 1% to increase by 1%, with comparable sales projected in the range of 0% to 2%[9] Strategic Partnerships - The company plans to expand its partnership with Babies "R" Us to enhance its presence in the baby gear category, which is seen as a significant growth opportunity[3] Shareholder Returns - The company declared a quarterly cash dividend of $0.50 per share, payable on April 3, 2024[9]

For the quarterly period ended October 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition period from ________ to _________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-11084 KOHL'S CORPORATION (Exact name of registrant as specified in its charter) Wisconsin 39-1630919 (State or other jur ...

Financial Data and Key Metrics Changes - Net sales decreased by 5.2% in Q3 2023, with comparable sales down 5.5% [19][70] - Digital sales declined by 16.5%, with digital penetration at 26% [32] - SG&A expenses increased by 1.9% to $1.4 billion, slightly better than expectations [33] - Net income for the quarter was $59 million, with earnings per diluted share at $0.53 [50] - Gross margin improved to 38.9%, an increase of 158 basis points year-over-year [70] Business Line Data and Key Metrics Changes - Comparable beauty sales in Sephora shops opened in 2021 and 2022 increased more than 30% compared to last year [20] - Total beauty sales increased more than 70% in Q3, contributing to beauty share gains [20] - Home decor sales outperformed in stores, driven by new categories [36] - Pet business sales increased more than 40% in Q3 [24] - Apparel and footwear showed weakness in cold weather categories, but polished casual and dressy offerings performed well [25] Market Data and Key Metrics Changes - Store sales in the Midwest, Mid-Atlantic, and Northeast regions were down low- to mid-single digits due to weather impacts, while other regions saw low-single-digit increases [14] - The company experienced a divergence in performance based on regional weather conditions affecting demand [14] Company Strategy and Development Direction - The company is focused on four strategic priorities: enhancing customer experience, simplifying value strategies, managing inventory and expenses, and strengthening the balance sheet [2][29] - The company aims to position itself as a gifting destination, expanding the gifting section significantly for the holiday season [35] - The partnership with Sephora is expected to grow into a $2 billion business by 2025 [17] - The company is committed to reducing inventory levels and improving inventory turns [65] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a softer demand environment due to weather and macroeconomic pressures but expressed optimism about store performance and strategic initiatives [13][18] - The company expects to see the full impact of its strategic efforts in 2024, with a focus on improving sales momentum [80] - Management is confident in the ability to offset potential regulatory impacts on credit revenue through various initiatives [56][58] Other Important Information - The company ended the quarter with $190 million in cash and cash equivalents, and inventory was down 13% compared to last year [51] - Capital expenditures for the quarter were $157 million, with expectations for lower spending in 2024 [52] - The company remains committed to returning capital to shareholders, with a quarterly cash dividend of $0.50 per share [54] Q&A Session Summary Question: What is the path back to positive comps? - Management indicated that 2023 is focused on rebuilding and repositioning the company, with positive store performance providing a foundation for potential positive comps in 2024 [80] Question: Can you provide details on leadership changes? - Management discussed restructuring for closer alignment with store operations to better execute strategic priorities [82] Question: What is the outlook for promotions and merchandise margins? - Management expects a promotional environment during the holiday season, which is factored into guidance [90] Question: How is the Sephora partnership performing? - The Sephora partnership is driving significant traffic and sales, with 30% of customers being new to Kohl's [86][106] Question: What are the expectations for inventory management moving forward? - Management emphasized the importance of inventory management, aiming for increased inventory turns and a more agile approach to inventory levels [98][145]

Cautionary Statement Regarding Forward-Looking Information In addition, this presentation contains non-GAAP financial measures, including Free Cash Flow. Reconciliations of all non-GAAP measures to the most directly comparable GAAP measures are included in the Appendix of this presentation. Q3 2023 Results_________________ 16 Tom Kingsbury, Kohl's chief executive officer, said "Kohl's third quarter earnings reflect strong gross margin and expense management as well as additional progress against our strateg ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 29, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition period from ________ to _________ Commission file number 1-11084 KOHL'S CORPORATION (Exact name of registrant as specified in its charter) Wisconsin 39-1630919 (State or other jurisd ...

• Greater consistency in our marketing offers • Heightened focus on inventory control processes to increase inventory turns 9 $2 billion sales goal* * By 2025 2023 Outlook & Long-Term Strategy METRIC FULL YEAR GUIDANCE Focused on returning balance sheet to historical strength through balanced capital allocation strategy • Will continue to prioritize investments in the business, followed by our commitment to the dividend with excess cash deployed for debt reduction and share repurchases • We remain firmly co ...