Kohl’s(KSS) - 2025 Q2 - Quarterly Results

Financial Performance - Net sales for Q2 2024 decreased by 4.2% year-over-year to $3.5 billion, with comparable sales down 5.1%[2] - Diluted earnings per share rose to $0.59 compared to $0.52 in the prior year[3] - Operating income for Q2 was $166 million, an increase from $163 million in the prior year, with an operating margin of 4.4%[3] - Net income for the six months ended August 3, 2024, was $39 million, down from $72 million in the same period last year[11] Expenses and Margins - Gross margin increased by 59 basis points to 39.6% of net sales[2] - SG&A expenses decreased by 4.2% year-over-year to $1.2 billion, representing 33.5% of total revenue[3] - Depreciation and amortization expenses were $376 million, slightly up from $374 million[11] Inventory and Cash Management - Inventory decreased by 9% year-over-year, totaling $3.2 billion[3] - Merchandise inventories decreased by $269 million, compared to a decrease of $283 million in the previous year[11] - Net cash provided by operating activities increased to $247 million from $228 million year-over-year[11] - Net cash used in investing activities decreased to $237 million from $335 million[11] - Cash and cash equivalents at the beginning of the period were $183 million, up from $153 million[11] - The company reported a net increase in cash and cash equivalents of $48 million, compared to $51 million last year[11] Debt and Capital Management - Long-term debt was reduced by $113 million through the redemption of remaining 9.50% notes due May 15, 2025[3] - Net borrowings under the revolving credit facility amounted to $318 million, compared to $475 million last year[11] Guidance and Future Outlook - The company updated its full-year 2024 guidance, expecting net sales to decrease by 4% to 6% and comparable sales to decrease by 3% to 5%[6] - Capital expenditures for 2024 are projected to be approximately $500 million, including investments in the Sephora partnership[6] Dividends - The Board of Directors declared a quarterly cash dividend of $0.50 per share, payable on September 25, 2024[6] - Dividends paid were $111 million, a slight increase from $110 million[11] Accounts Payable - Accounts payable increased significantly to $183 million from $46 million[11]