10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2021


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition period from ________ to _________

Commission file number 1-11084

KOHL’S CORPORATION

(Exact name of registrant as specified in its charter)


Wisconsin		39-1630919
(State or other jurisdiction of incorporation or organization)		(I.R.S. 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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on

which registered

Common Stock, $.01 par value

KSS

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☒	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: August 27, 2021 Common Stock, Par Value $0.01 per Share, 150,534,221 shares outstanding.

KOHL’S CORPORATION

INDEX


PART I	FINANCIAL INFORMATION	3
Item 1.	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	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21

PART II	OTHER INFORMATION	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 5.	Other Information	22
Item 6.	Exhibits	23
	Signatures	24

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

KOHL’S CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Dollars in Millions)	July 31, 2021	January 30, 2021	August 1, 2020
Assets
Current assets:
Cash and cash equivalents	$2,569	$2,271	$2,428
Merchandise inventories	2,733	2,590	2,698
Other	356	974	562
Total current assets	5,658	5,835	5,688
Property and equipment, net	7,107	6,689	6,970
Operating leases	2,301	2,398	2,418
Other assets	440	415	159
Total assets	$15,506	$15,337	$15,235

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$1,495	$1,476	$1,064
Accrued liabilities	1,554	1,270	1,216
Current portion of:
Finance lease and financing obligations	117	115	126
Operating leases	143	161	160
Total current liabilities	3,309	3,022	2,566
Long-term debt	1,909	2,451	3,450
Finance lease and financing obligations	1,906	1,387	1,356
Operating leases	2,532	2,625	2,637
Deferred income taxes	245	302	122
Other long-term liabilities	386	354	267
Shareholders’ equity:
Common stock	4	4	4
Paid-in capital	3,349	3,319	3,290
Treasury stock, at cost	(11,920)	(11,595)	(11,594)
Retained earnings	13,786	13,468	13,137
Total shareholders’ equity	$5,219	$5,196	$4,837
Total liabilities and shareholders’ equity	$15,506	$15,337	$15,235

See accompanying Notes to Consolidated Financial Statements

Table of Contents

KOHL’S CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended			Six Months Ended
(Dollars in Millions, Except per Share Data)	July 31, 2021	August 1, 2020	July 31, 2021		August 1, 2020
Net sales	$4,223	$3,213	$7,885		$5,373
Other revenue	224	194	449		462
Total revenue	4,447	3,407	8,334		5,835
Cost of merchandise sold	2,426	2,149	4,659		3,936
Operating expenses:
Selling, general, and administrative	1,241	1,050	2,411		2,116
Depreciation and amortization	210	219	421		446
Impairments, store closing, and other costs	—	(2)	—		64
(Gain) on sale of real estate	—	(127)	—		(127)
Operating income (loss)	570	118	843		(600)
Interest expense, net	62	78	129		136
Loss on extinguishment of debt	—	—	201		—
Income (loss) before income taxes	508	40	513		(736)
Provision (benefit) for income taxes	126	(7)	117		(242)
Net income (loss)	$382	$47	$396		$(494)
Net income (loss) per share:
Basic	$2.51	$0.31	$2.58		$(3.21)
Diluted	$2.48	$0.30	$2.55		$(3.21)

See accompanying Notes to Consolidated Financial Statements

Table of Contents

KOHL’S CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)


	Three Months Ended		Six Months Ended
(Dollars in Millions, Except per Share Data)	July 31, 2021	August 1, 2020		July 31, 2021	August 1, 2020
Common stock
Balance, beginning of period	$4	$4		$4	$4
Stock-based awards	—	—		—	—
Balance, end of period	$4	$4		$4	$4

Paid-in capital
Balance, beginning of period	$3,333	$3,289		$3,319	$3,272
Stock-based awards	16	1		30	18
Balance, end of period	$3,349	$3,290		$3,349	$3,290

Treasury stock, at cost
Balance, beginning of period	$(11,663)	$(11,593)		$(11,595)	$(11,571)
Treasury stock purchases	(255)	—		(301)	(8)
Stock-based awards	(3)	(1)		(25)	(21)
Dividends paid	1	—		1	6
Balance, end of period	$(11,920)	$(11,594)		$(11,920)	$(11,594)

Retained earnings
Balance, beginning of period	$13,443	$13,090		$13,468	$13,745
Net income (loss)	382	47		396	(494)
Dividends paid	(39)	—		(78)	(114)
Balance, end of period	$13,786	$13,137		$13,786	$13,137

Total shareholders' equity, end of period	$5,219	$4,837		$5,219	$

SEC Form 10-Q filed by Kohl&#39;s Corporation

SEC Form 10-Q filed by Kohl's Corporation