Kohl's 10-Q: Financials and Debt Update

TL;DR

Kohl's Q1 2024 10-Q is out. Debt maturities in 2025, 2031, 2037. Check financials.

AI Summary

Kohl's Corporation filed its 10-Q for the period ending May 4, 2024. The filing details financial performance and operational updates. Key financial figures and debt obligations, including senior notes due in 2025, 2031, and 2037, are presented. The company's fiscal year ends on January 29th.

Why It Matters

This filing provides investors with a quarterly update on Kohl's financial health, including its debt structure and performance, which can influence stock valuation and future strategic decisions.

Risk Assessment

Risk Level: medium — The filing contains information about Kohl's debt obligations and financial performance, which are key indicators of company risk.

Key Numbers

• 2025 — Senior Notes Maturity (Upcoming debt obligation)
• 2031 — Senior Notes Maturity (Upcoming debt obligation)
• 2037 — Senior Notes Maturity (Upcoming debt obligation)

Key Players & Entities

• KOHLS Corp (company) — Filer
• 20240504 (date) — Reporting period end date
• 20240606 (date) — Filing date
• Four Point Two Five Percent Senior Notes Due Twenty Twenty Five (dollar_amount) — Debt instrument
• Senior Notes Due Twenty Thirty Seven (dollar_amount) — Debt instrument
• Senior Notes Due Twenty Thirty One (dollar_amount) — Debt instrument

FAQ

Key Financial Figures

• $0.01 — e: May 31, 2024 Common Stock, Par Value $0.01 per Share, 111,205,633 shares outstandi
• $3.2 b — include: Net sales decreased 5.3%, to $3.2 billion, with comparable sales down 4.4%.
• $1.2 billion — ve ("SG&A") expenses decreased 0.8%, to $1.2 billion. As a percentage of total revenue, SG&A
• $43 million — year-over-year. Operating income was $43 million compared to $98 million in the prior ye
• $98 million — ting income was $43 million compared to $98 million in the prior year. As a percentage of t
• $27 m — sis points to last year. Net loss was $27 million, or ($0.24) per diluted share. Th
• $0.24 — t year. Net loss was $27 million, or ($0.24) per diluted share. This compares to ne
• $14 m — d share. This compares to net income of $14 million, or $0.13 per diluted share in th
• $0.13 — mpares to net income of $14 million, or $0.13 per diluted share in the prior year.
• $3.1 b — hare in the prior year. Inventory was $3.1 billion, a decrease of 13% to last year.
• $7 million — ear. Operating cash flow was a use of $7 million as compared to a use of $202 million in
• $202 million — e of $7 million as compared to a use of $202 million in the prior year. Our Strategy Koh
• $1.25 — ted earnings per share: In the range of $1.25 to $1.85 Capital expenditures: Approx
• $1.85 — ngs per share: In the range of $1.25 to $1.85 Capital expenditures: Approximately $
• $500 m — 5 Capital expenditures: Approximately $500 million, including expansion of Sephora p

Filing Documents

• kss-20240504.htm (10-Q) — 649KB
• kss-ex10_2.htm (EX-10.2) — 123KB
• kss-ex10_3.htm (EX-10.3) — 39KB
• kss-ex31_1.htm (EX-31.1) — 15KB
• kss-ex31_2.htm (EX-31.2) — 15KB
• kss-ex32_1.htm (EX-32.1) — 8KB
• kss-ex32_2.htm (EX-32.2) — 8KB
• img74273611_0.jpg (GRAPHIC) — 51KB
• 0000950170-24-069880.txt ( ) — 3862KB
• kss-20240504.xsd (EX-101.SCH) — 834KB
• kss-20240504_htm.xml (XML) — 342KB

Financial Statements

Financial Statements: 3 Consolidated Balance Sheets 3 Consolidated Statements of Operations 4 Consolidated Statements of Changes in Shareholders' Equity 5 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 18 Item 4.

Controls and Procedures

Controls and Procedures 18 PART II OTHER INFORMATION 20 Item 1.

Legal Proceedings

Legal Proceedings 20 Item 1A.

Risk Factors

Risk Factors 20 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20 Item 5. Other Information 20 Item 6. Exhibits 21

Signatures

Signatures 22 Table of Contents

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements KOHL'S CORPORATION CONSOLIDATED B ALANCE SHEETS (Dollars in Millions) May 4, 2024 February 3, 2024 April 29, 2023 Assets (Unaudited) (Audited) (Unaudited) Current assets: Cash and cash equivalents $ 228 $ 183 $ 286 Merchandise inventories 3,083 2,880 3,526 Other 345 347 347 Total current assets 3,656 3,410 4,159 Property and equipment, net 7,664 7,720 7,803 Operating leases 2,498 2,499 2,368 Other assets 460 380 380 Total assets $ 14,278 $ 14,009 $ 14,710 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 1,220 $ 1,134 $ 1,310 Accrued liabilities 1,265 1,201 1,164 Borrowings under revolving credit facility 355 92 765 Current portion of: Long-term debt — — 111 Finance leases and financing obligations 81 83 93 Operating leases 92 102 111 Total current liabilities 3,013 2,612 3,554 Long-term debt 1,638 1,638 1,637 Finance leases and financing obligations 2,651 2,680 2,710 Operating leases 2,783 2,781 2,634 Deferred income taxes 94 107 129 Other long-term liabilities 286 298 326 Shareholders' equity: Common stock 2 2 2 Paid-in capital 3,539 3,528 3,489 Treasury stock, at cost ( 2,579 ) ( 2,571 ) ( 2,569 ) Retained earnings 2,851 2,934 2,798 Total shareholders' equity $ 3,813 $ 3,893 $ 3,720 Total liabilities and shareholders' equity $ 14,278 $ 14,009 $ 14,710 See accompanying Notes to Consolidated Financial Statements 3 Table of Contents KOHL'S CORPORATION CONSOLIDATED STAT EMENTS OF OPERATIONS (Unaudited) Quarter Ended (Dollars in Millions, Except per Share Data) May 4, 2024 April 29, 2023 Net sales $ 3,178 $ 3,355 Other revenue 204 216 Total revenue 3,382 3,571 Cost of merchandise sold 1,923 2,047 Operating expenses: Selling, genera

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for fiscal year end Consolidated Financial Statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the Consolidated Financial Statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024 (Commission File No. 1-11084) as filed with the Securities and Exchange Commission ("SEC"). Due to the seasonality of the business of Kohl's Corporation (the "Company," "Kohl's," "we," "our," or "us"), results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. We operate as a single business unit. Recent Accounting Pronouncements Accounting Standards Issued and Adopted There are no recently adopted accounting pronouncements that had a material impact on our financial statements. Accounting Standards Issued but not yet Effective Standard Description Effect on our Financial Statements Segment Reporting (ASU 2023-07) Issued November 2023 Effective for Fiscal Years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 The amendments in this ASU improve reportable segment disclosure requirements, primarily through enhanced disclosures around significant segment expenses. We are evaluating the impact of the new required disclosures on our financial statements but do not expect the effect of the adoption to be material. Income Taxes (ASU 2023-09) Issued December 2023 Effective for Fiscal Ye

Management's Discussion and Analysis o f Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis o f Financial Condition and Results of Operations For purposes of the following discussion, unless noted, all references to "the quarter" and "the first quarter" are for the three fiscal months (13 weeks) ended May 4, 2024 or April 29, 2023. This Form 10-Q contains "forward-looking statements" made within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believes," "anticipates," "plans," "may," "intends," "will," "should," "expects," and similar expressions are intended to identify forward-looking statements. Forward-looking statements include the statements under management's discussion and analysis, financial and capital allocation outlook and may include comments about our future sales or financial performance and our plans, performance and other objectives, expectations or intentions, such as statements regarding our liquidity, debt service requirements, planned capital expenditures, future store initiatives, and adequacy of capital resources and reserves. Forward-looking statements are based on management's then-current views and assumptions and, as a result, are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Any such forward-looking statements are qualified by the important risk factors, described in Part I Item 1A of our 2023 Form 10-K, or disclosed from time to time in our filings with the SEC, that could cause actual results to differ materially from those predicted by the forward-looking statements. Forward-looking statements relate to the date initially made, and we undertake no obligation to update them. Executive Summary Kohl's is a leading omnichannel retailer operating 1,176 stores and a website (www.Kohls.com) as of May 4, 2024. Our Kohl's stores and website sell moderately-priced private and national brand apparel, footwear, accessories, beauty, and home products. Our Kohl's stores generally c

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View this 10-Q filing on SEC EDGAR