Kohl's Reports Fourth Quarter and Full Year Fiscal 2024 Financial Results

Kohl's Corporation (NYSE:KSS) today reported results for the quarter and year ended February 1, 2025.

• Fourth quarter net sales decreased 9.4% and comparable sales decreased 6.7%; fiscal year 2024 net sales decreased 7.2% and comparable sales decreased 6.5%
• Fourth quarter diluted earnings per share ("EPS") of $0.43 and adjusted diluted EPS of $0.95
• Fiscal year 2024 diluted EPS of $0.98 and adjusted diluted EPS of $1.50
• Introduces fiscal year 2025 financial outlook

Ashley Buchanan, Kohl's Chief Executive Officer, said "Kohl's is built on a strong foundation that includes operating more than 1,100 conveniently located stores nationwide, serving over 60 million customers, with 30 million of those customers being Kohl's Loyalty Members. Kohl's has a tremendous opportunity to build on our strengths, address key areas of opportunity and better serve our customers every day. "

"We have identified key areas of focus and are taking action in 2025 to reposition Kohl's for future success. Our customers expect great product, great value, and a great experience from Kohl's. I am confident that the areas we identified will deliver on what customers want and expect from Kohl's," Buchanan continued.

Fourth Quarter 2024 Results

Comparisons refer to the 13-week period ended February 1, 2025 versus the 14-week period ended February 3, 2024 unless noted otherwise

• Net sales decreased 9.4% year-over-year, to $5.2 billion. The fourth quarter fiscal 2023 included net sales of approximately $164 million from the 14th week.
• Comparable sales, which compare the 13-week period ending February 1, 2025 versus the 13-week period ended January 27, 2024, decreased 6.7%.
• Gross margin as a percentage of net sales was 32.9%, an increase of 49 basis points.
• Selling, general & administrative (SG&A) expenses decreased 4.5% year-over-year, to $1.5 billion. As a percentage of total revenue, SG&A expenses were 28.5%, an increase of 148 basis points year-over-year.
• Operating income was $126 million compared to $299 million in the prior year. As a percentage of total revenue, operating income was 2.3%, a decrease of 270 basis points year-over-year.
• Net income was $48 million, or $0.43 per diluted share, and adjusted net income of $106 million, or $0.95 per adjusted diluted share. This compares to net income of $186 million, or $1.67 per diluted share in the prior year.
• Inventory was $2.9 billion, an increase of 2% year-over-year.
• Operating cash flow was $596 million.

Fiscal Year 2024 Results

Comparisons refer to the 52-week period ended February 1, 2025 versus the 53-week period ended February 3, 2024 unless noted otherwise

• Net sales decreased 7.2% year-over-year, to $15.4 billion. Fiscal 2023 included net sales of approximately $164 million from the 53rd week.
• Comparable sales, which compare the 52-week period ending February 1, 2025 versus the 52-week period ended January 27, 2024, decreased 6.5%.
• Gross margin as a percentage of net sales was 37.2%, an increase of 50 basis points.
• Selling, general & administrative (SG&A) expenses decreased 3.7% year-over-year, to $5.3 billion. As a percentage of total revenue, SG&A expenses were 32.7%, an increase of 118 basis points year-over-year.
• Operating income was $433 million compared to $717 million in the prior year. As a percentage of total revenue, operating income was 2.7%, a decrease of 143 basis points year-over-year.
• Net income was $109 million, or $0.98 per diluted share, and adjusted net income of $167 million, or $1.50 per adjusted diluted share. This compares to net income of $317 million, or $2.85 per diluted share in the prior year.
• Operating cash flow was $648 million.
• Long-term debt was reduced by $113 million through the redemption of the remaining 9.50% notes due May 15, 2025.

2025 Financial and Capital Allocation Outlook

For the full year 2025, the Company currently expects the following:

• Net sales: A decrease of (5%) to a decrease of (7%)
• Comparable sales: A decrease of (4%) to a decrease of (6%)
• Operating margin: In the range of 2.2% to 2.6%
• Diluted EPS: In the range of $0.10 to $0.60
• Capital Expenditures: in the range of $400 million to $425 million
• Dividend: On March 11, 2025, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.125 per share. The dividend is payable April 2, 2025 to shareholders of record at the close of business on March 21, 2025.

Fourth Quarter 2024 Earnings Conference Call

Kohl's will host its quarterly earnings conference call at 9:00 am ET on March 11, 2025. A webcast of the conference call and the related presentation materials will be available via the Company's web site at investors.kohls.com, both live and after the call.

Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Measures

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as "believes," "expects," "may," "will," "should," "anticipates," "plans," or similar expressions to identify forward-looking statements. Forward-looking statements include the information under "2025 Financial and Capital Allocation Outlook." Such statements are subject to certain risks and uncertainties, which could cause the Company's actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company's Annual Report on Form 10-K, which are expressly incorporated herein by reference, and other factors as may periodically be described in the Company's filings with the SEC. Forward-looking statements relate to the date initially made, and the Company undertakes no obligation to update them.

This press release contains certain financial measures that are not prepared in accordance with generally accepted accounting principles (GAAP), including adjusted net income and adjusted diluted earnings per share. These non-GAAP financial measures are provided as additional insight into our operational performance and do not purport to be substitutes for, or superior to, net income or diluted earnings per share as a measure of operating performance. We believe these adjusted measures are useful, as they are more representative of our core business, enhance comparability across reporting periods and to industry peers, and align with the measures used by management to evaluate the Company's performance. We caution investors that non-GAAP measures should not be viewed in isolation and should be evaluated in addition to, and not as an alternative for, our results reported in accordance with GAAP. Because companies may use different calculation methods, these measures may not be comparable to other similarly titled measures reported by other companies. A reconciliation of each non-GAAP measure to the most directly comparable GAAP measure is included in this release.

About Kohl's

Kohl's (NYSE:KSS) is a leading omnichannel retailer built on a foundation that combines great brands, incredible value and convenience for our customers. Kohl's is uniquely positioned to deliver against its long-term strategy and its purpose to take care of families' realest moments. Kohl's serves millions of families in its more than 1,100 stores in 49 states, online at Kohls.com, and through the Kohl's App. With a large national footprint, Kohl's is committed to making a positive impact in the communities it serves. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl's impact in the community or how to join our winning team, visit Corporate.Kohls.com.

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Investor Relations:

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Media:

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