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

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.

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.

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.

(Dollars in Millions, Except per Share Data)

Net sales

Other revenue

Total revenue

Cost of merchandise sold

Gross margin rate

Operating expenses:

Selling, general, and administrative

As a percent of total revenue

Depreciation and amortization

Impairments, store closing, and other costs

Operating income

Interest expense, net

Income before income taxes

Provision for income taxes

Net income

Average number of shares:

Basic

Diluted

Earnings per share:

Basic

Diluted

(Dollars in Millions, Except per Share Data)

Net income (GAAP)

Impairments, store closing, and other costs

Income tax impact of items noted above

Adjusted Net income (non-GAAP)

Diluted earnings per share (GAAP)

Impairments, store closing, and other costs

Income tax impact of items noted above

Adjusted Diluted earnings per share (non-GAAP)

(Dollars in Millions)

Assets

Current assets:

Cash and cash equivalents

Merchandise inventories

Other

Total current assets

Property and equipment, net

Operating leases

Other assets

Total assets

Liabilities and Shareholders’ Equity

Current liabilities:

Accounts payable

Accrued liabilities

Borrowings under revolving credit facility

Current portion of:

Long-term debt

Finance leases and financing obligations

Operating leases

Total current liabilities

Long-term debt

Finance leases and financing obligations

Operating leases

Deferred income taxes

Other long-term liabilities

Shareholders’ equity:

Total liabilities and shareholders’ equity

(Dollars in Millions)

Operating activities

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Share-based compensation

Deferred income taxes

Impairments, store closing, and other costs

Non-cash lease expense

Other non-cash items

Changes in operating assets and liabilities:

Merchandise inventories

Other current and long-term assets

Accounts payable

Accrued and other long-term liabilities

Operating lease liabilities

Net cash provided by operating activities

Investing activities

Acquisition of property and equipment

Proceeds from sale of real estate

Other

Net cash used in investing activities

Financing activities

Net borrowings under revolving credit facility

Shares withheld for taxes on vested restricted shares

Dividends paid

Repayment of long-term borrowings

Premium paid on redemption of debt

Finance lease and financing obligation payments

Proceeds from financing obligations

Net cash used in financing activities

Net (decrease) increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period