Kohl’s Corporation reported net income for the fiscal year ended Feb. 1, 2003, increased 29.8% to $643.4 million, or $1.87 per diluted share, compared to $495.7 million, or $1.45 per diluted share for the fiscal year ended February 2, 2002. Net sales increased 21.8% to $9,120.3 million from $7,488.7 million a year ago. Comparable store sales increased 5.3%.
Net income for the fourth quarter ended Feb. 1, 2003, increased 19.3% to $279.0 million, or $0.81 per diluted share, compared to $233.8 million or $0.68 per diluted share for the quarter ended February 2, 2002. For the quarter, net sales increased 16.9% to $3,184.5 million from $2,724.2 million a year ago. Comparable store sales increased 1.2%.
Chairman & Chief Executive Officer Larry Montgomery said: “In a challenging retail environment, we demonstrated our ability to deliver both top and bottom line results. Total sales increased 21.8% over last year while comparable store sales increased 5.3%. We increased market share in every region where we operate. At the same time, we increased net income 29.8% over last year. This follows six consecutive years of earnings growth in excess of 30%. The credit for our success goes to over 70,000 hard working and dedicated Associates.”
During the year, the company opened 75 new stores including entries into the Boston, Houston, Nashville and Providence markets.
The Company plans to open approximately 80 new stores in 2003. Thirty-five stores will be opened in the first quarter, including the company’s entry into the Southern California market. Kohl’s will grand open 28 stores in the greater Los Angeles area on March 7th. In April, the Company will enter the San Antonio, TX market with three stores and open stores in Kalamazoo, MI; Springfield, MA; Hookset, NH and Doylestown, PA. At February 1, 2003, the Company operated 457 stores in 33 states compared with 382 stores in 29 states at the same time last year.
In the fall season, Kohl’s plans to open approximately 45 new stores, including entering the Phoenix, AZ market with 10 stores, Tucson, AZ with two stores, Flagstaff, AZ with one store and Las Vegas, NV with three stores.
In 2004, the Company plans to open approximately 95-100 new stores. The stores will open in a combination of new and existing markets. The Company will continue to expand its presence in the Southwest region, with additional stores in the greater Los Angeles area and new market entries into Sacramento, San Diego and Fresno. In addition, the company plans to continue to add fill-in locations in selected existing markets across the country.
KOHL's CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
13 weeks ended 13 weeks ended
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February 1, % to February 2, % to
2003 Net sales 2002 Net sales
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(In thousands, except per share data)
Net sales $3,184,479 $2,724,225
Cost of merchandise sold 2,133,528 67.0% 1,825,039 67.0%
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Gross margin 1,050,951 33.0% 899,186 33.0%
Operating expenses:
Selling, general, and
administrative 527,226 16.6% 464,334 17.0%
Depreciation and
amortization 50,979 1.6% 40,414 1.5%
Goodwill amortization -- 0.0% 1,300 0.0%
Preopening expenses 7,663 0.2% 3,857 0.2%
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Operating income 465,083 14.6% 389,281 14.3%
Interest expense, net 16,612 0.5% 13,128 0.5%
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Income before income taxes 448,471 14.1% 376,153 13.8%
Provision for income taxes 169,520 5.3% 142,331 5.2%
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Net income $278,951 8.8% $233,822 8.6%
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(a) For both periods presented, the earnings per share is calculated
using the "if converted" method. The net income in the calculation
is $280,402 and $235,233, which includes interest on convertible
debt securities, net of tax, of $1,451 and $1,411 in 2002 and
2001, respectively.
(b) For both periods presented, the average number of shares includes
3,946 shares related to the assumed conversion of the convertible
debt securities.
KOHL's CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
52 weeks ended 52 weeks ended
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February 1, % to February 2, % to
2003 Net sales 2002 Net sales
--------------------- ---------------------
(In thousands, except per share data)
Net sales $9,120,287 $7,488,654
Cost of merchandise sold 5,981,219 65.6% 4,923,527 65.7%
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Gross margin 3,139,068 34.4% 2,565,127 34.3%
Operating expenses:
Selling, general, and
administrative 1,817,968 19.9% 1,527,478 20.4%
Depreciation and
amortization 191,439 2.1% 151,965 2.0%
Goodwill amortization -- 0.0% 5,200 0.1%
Preopening expenses 39,278 0.4% 30,509 0.4%
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Operating income 1,090,383 12.0% 849,975 11.4%
Interest expense, net 56,009 0.6% 50,111 0.7%
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Income before income taxes 1,034,374 11.4% 799,864 10.7%
Provision for income taxes 390,993 4.3% 304,188 4.1%
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Net income $643,381 7.1% $495,676 6.6%
