Kohl’s Net Jumps 21% on Robust Sales

For the nine months ended October 31, 2009, net income was $560 million, or $1.83 per diluted share, compared to $549 million, or $1.79 per diluted share, for the nine months ended November 1, 2008. Net sales increased 3.1% to $11.5 billion from $11.2 billion a year ago. Comparable store sales decreased 1.3% for the same period.

Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “We were pleased with our sales performance in the third quarter as we achieved a positive comparable sales increase in a very difficult environment. In addition, we continue to experience improvement in inventory management and increased penetration in “Only at Kohl’s” brands that have led to increased cash flow and consistently improved gross margins. Our expense performance allowed us to enjoy significant leverage on the increased sales. As we enter the fourth quarter, we will continue to focus on providing value for our customers as we expect them to continue to be conservative in their spending during this holiday season.”

Mansell added, “I am very proud of our associates and the role they played in these results and want to thank them for their hard work, loyalty and dedication in delivering on our promise to ‘expect great things’ from Kohl’s.”

Expansion Update

During the first nine months of 2009, Kohl’s successfully opened 56 stores. The Company ended the quarter with 1,059 stores in 49 states, compared with 1,004 stores in 48 states at the same time last year. The Company completed 51 store remodels, compared to 36 stores last year.

Earnings Guidance

For the fourth quarter, the Company expects total sales to increase between 3 and 6 percent; comparable store sales to range between negative 1 and positive 2 percent; and gross margin as a percent of sales to increase 50 to 60 basis points over last year. The Company expects selling, general and administrative expenses to increase between 4 and 5 percent. This would result in earnings per diluted share of $1.14 – $1.24 for the fourth quarter and $2.98 – $3.08 for fiscal 2009.