Form 8-K KOHLS Corp For: May 14
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 14, 2015
Wisconsin | 001-11084 | 39-1630919 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
N56 W17000 Ridgewood Drive Menomonee Falls, Wisconsin | 53051 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant's telephone number, including area code: (262) 703-7000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On May 14, 2015, Kohl's Corporation issued a press release reporting its earnings for the first quarter ended May 2, 2015. A copy of the press release is attached as Exhibit 99.1 and incorporated by reference herein.
The information in this Item 2.02, including the exhibit attached hereto, is furnished solely pursuant to Item 2.02 of Form 8-K. Consequently, such information is not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. Further, the information in this Item 2.02, including the exhibit, shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933.
Item 7.01. Regulation FD Disclosure.
See Item 2.02.
Item 8.01. Other Events.
On May 13, 2015 the Kohl's Board of Directors declared a quarterly dividend of $0.45 per common share. The dividend will be paid on June 24, 2015 to all shareholders of record at the close of business on June 10, 2015.
Cautionary Statement Regarding Forward-Looking Information
This current report on Form 8-K contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as "believes," "expects," "may," "will," "should," "anticipates," "plans," or similar expressions to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause the Company's actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company's Annual Report on Form 10-K, which is expressly incorporated herein by reference, and other factors as may periodically be described in the Company's filings with the SEC.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. | Description | |
99.1 | Press Release dated May 14, 2015 | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: May 14, 2015 | KOHL'S CORPORATION |
By: | /s/ Richard D. Schepp | |||
Richard D. Schepp | ||||
Senior Executive Vice President, | ||||
General Counsel and Secretary | ||||
EXHIBIT INDEX
Exhibit No. | Description |
99.1 | Press Release dated May 14, 2015 |
Kohl's Corporation Reports First Quarter Financial Results
MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--May 14, 2015-- Kohl’s Corporation (NYSE: KSS). Kohl’s Corporation today reported results for the quarter ended May 2, 2015.
Quarter | |||||||||
($ in millions) | 2015 | 2014 | Change | ||||||
Sales | $ | 4,123 | $ | 4,070 | 1.3% | ||||
Comparable store sales | 1.4 | % | (3.4 | )% | - | ||||
Gross margin | 36.9 | % | 36.8 | % | 17 bp | ||||
Net income | $ | 127 | $ | 125 | 2% | ||||
Diluted earnings per share | $ | 0.63 | $ | 0.60 | 5% | ||||
Kevin Mansell, Kohl's chairman, chief executive officer and president, said, "Sales were modestly below our original expectations for the quarter, but accelerated in the March/April combined period after a weak February. We are very pleased with our earnings results, with a more balanced promotional calendar driving merchandise margin combined with strong expense control."
Dividend
On May 13, 2015, Kohl's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.45 per share. The dividend is payable June 24, 2015 to shareholders of record at the close of business on June 10, 2015.
Store Update
Kohl’s opened two new stores during the quarter. The Company now operates 1,164 stores in 49 states, compared with 1,160 stores at the same time last year.
First Quarter 2015 Earnings Conference Call
Kohl's will host its quarterly earnings conference call at 8:30 am ET on May 14, 2015. The phone number for the conference call is (800) 230-1074. Replays of the call will be available for 30 days by dialing (800) 475-6701. The conference ID for both the live call and the replay is 346894. The conference call and replays are also accessible via the Company's web site at http://www.kohlscorporation.com/InvestorRelations/event-calendar.htm.
About Kohl's
Kohl’s (NYSE: KSS) is a leading specialty department store with 1,164 stores in 49 states. With a commitment to inspiring and empowering families to lead fulfilled lives, the company offers amazing national and exclusive brands, incredible savings and inspiring shopping experiences in-store, online at Kohls.com and via mobile devices. Committed to its communities, Kohl’s has raised more than $274 million for children’s initiatives nationwide through its Kohl’s Cares® cause merchandise program, which operates under Kohl's Cares, LLC, a wholly-owned subsidiary of Kohl's Department Stores, Inc. For additional information about Kohl’s philanthropic and environmental initiatives, visit www.Kohls.com/Cares. For a list of store locations and information, or for the added convenience of shopping online, visit www.Kohls.com.
Connect with Kohl’s:
Facebook (http://www.facebook.com/Kohls)
Twitter (http://twitter.com/Kohls)
Google+ (http://plus.google.com/+Kohls)
Pinterest (http://pinterest.com/Kohls)
Instagram (http://instagram.com/Kohls)
YouTube (http://www.youtube.com/Kohls)
Contacts
Investor Relations:
Wes McDonald, Senior Executive Vice President and Chief Financial Officer, (262) 703-1893
Media:
Bevin Bailis, SVP, PR and Communications, (262) 703-1464
KOHL'S CORPORATION | |||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||
(In Millions, except per share data) | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
May 2, 2015 | May 3, 2014 | ||||||
Net sales | $ | 4,123 | $ | 4,070 | |||
Cost of merchandise sold | 2,600 | 2,574 | |||||
Gross margin | 1,523 | 1,496 | |||||
Operating expenses: | |||||||
Selling, general, and administrative | 1,016 | 1,000 | |||||
Depreciation and amortization | 227 | 216 | |||||
Operating income | 280 | 280 | |||||
Interest expense, net | 84 | 85 | |||||
Income before income taxes | 196 | 195 | |||||
Provision for income taxes | 69 | 70 | |||||
Net income | $ | 127 | $ | 125 | |||
Basic net income per share | $ | 0.64 | $ | 0.60 | |||
Average number of shares | 200 | 206 | |||||
Diluted net income per share | $ | 0.63 | $ | 0.60 | |||
Average number of shares | 202 | 208 | |||||
As a percent of net sales: | |||||||
Gross margin | 36.9 | % | 36.8 | % | |||
Selling, general and | |||||||
administrative expenses | 24.6 | % | 24.6 | % | |||
Operating income | 6.8 | % | 6.9 | % | |||
Net income | 3.1 | % | 3.1 | % | |||
KOHL'S CORPORATION | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(In Millions) | ||||||||
(Unaudited) | ||||||||
May 2, 2015 | May 3, 2014 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,195 | $ | 717 | ||||
Merchandise inventories | 4,165 | 3,981 | ||||||
Deferred income taxes | 129 | 137 | ||||||
Other | 340 | 304 | ||||||
Total current assets | 5,829 | 5,139 | ||||||
Property and equipment, net | 8,518 | 8,677 | ||||||
Other assets | 216 | 298 | ||||||
Total assets | $ | 14,563 | $ | 14,114 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,645 | $ | 1,382 | ||||
Accrued liabilities | 1,140 | 1,078 | ||||||
Income taxes payable | 87 | 73 | ||||||
Current portion of capital lease | ||||||||
and financing obligations | 113 | 112 | ||||||
Total current liabilities | 2,985 | 2,645 | ||||||
Long-term debt | 2,793 | 2,792 | ||||||
Capital lease and financing obligations | 1,840 | 1,919 | ||||||
Deferred income taxes | 358 | 339 | ||||||
Other long-term liabilities | 570 | 562 | ||||||
Shareholders' equity | 6,017 | 5,857 | ||||||
Total liabilities and shareholders' equity | $ | 14,563 | $ | 14,114 | ||||
KOHL'S CORPORATION | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In Millions) | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
May 2, 2015 | May 3, 2014 | ||||||
Operating activities | |||||||
Net income | $ | 127 | $ | 125 | |||
Adjustments to reconcile net income to net cash | |||||||
provided by operating activities: | |||||||
Depreciation and amortization | 227 | 216 | |||||
Share-based compensation | 14 | 11 | |||||
Excess tax benefits from share-based compensation | (9 | ) | (2 | ) | |||
Deferred income taxes | (23 | ) | 5 | ||||
Other non-cash revenues and expenses | 10 | 5 | |||||
Changes in operating assets and liabilities: | |||||||
Merchandise inventories | (349 | ) | (105 | ) | |||
Other current and long-term assets | 28 | 15 | |||||
Accounts payable | 134 | 17 | |||||
Accrued and other long-term liabilities | (69 | ) | (44 | ) | |||
Income taxes | 12 | (64 | ) | ||||
Net cash provided by operating activities | 102 | 179 | |||||
Investing activities | |||||||
Acquisition of property and equipment | (176 | ) | (176 | ) | |||
Other | 1 | 4 | |||||
Net cash used in investing activities | (175 | ) | (172 | ) | |||
Financing activities | |||||||
Treasury stock purchases | (147 | ) | (167 | ) | |||
Shares withheld for taxes on vested restricted shares | (18 | ) | (14 | ) | |||
Dividends paid | (90 | ) | (80 | ) | |||
Proceeds from financing obligations | — | 3 | |||||
Capital lease and financing obligation payments | (27 | ) | (29 | ) | |||
Proceeds from stock option exercises | 134 | 24 | |||||
Excess tax benefits from share-based compensation | 9 | 2 | |||||
Net cash used in financing activities | (139 | ) | (261 | ) | |||
Net decrease in cash and cash equivalents | (212 | ) | (254 | ) | |||
Cash and cash equivalents at beginning of period | 1,407 | 971 | |||||
Cash and cash equivalents at end of period | $ | 1,195 | $ | 717 | |||