Slide 1: Q1 2023 Results Presentation
KOHLS Q1 2023 Results Presentation May 24, 2023
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation 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,” “anti
Slide 3: Our 2023 Priorities / Outlook / Q1 Results
Our 2023 Priorities 7 2023 Outlook & Long-Term Strategy 11 Q1 2023 Results ..... 15
Slide 4: Tom Kingsbury, Chief Executive Officer
Tom Kingsbury Kohl’s Chief Executive Officer
Slide 5: Kohl's has built a solid foundation for growth
Kohl's has built a solid foundation for growth Customers Stores + Active Customers Stores in 49 states 65M 1,171 SOM | iovaty Members 600 wf | Stores with Sephora Of Americans live Accessible and oO, hin 15 miles of Aspirational Brand 80% one store” ° Portfolio Digital je Gy BH 38% | steers 32% 1.6B
Slide 6: Long-standing focus on ESG stewardship for People and Planet
KOHES OCares Long-standing focus on ESG stewardship for People and Planet Environmental, Social, and Governance stewardship is a key component of our strategy and our vision, and guides how we interact with our customers, employees, and our communities ~100,000 Associates 8 Business Resource Groups
Slide 7: Our 2023 Priorities
Slide 8: to Drive Efficiencies and Expense Discipline
to Drive Efficiencies and Expense Discipline
Slide 9: Focused on Four Overarching Priorities to Drive Improved Sales and Profitability
FOCUSED ON FOUR OVERARCHING PRIORITIES TO Drive Improved Sales and Profitability Enhance the Customer Experience * Sephora growth and expansion * Optimize assortment to reflect customer interests * Create an exciting in-store experience * Focus on gifting * Drive digital growth Accelerate and Simpli
Slide 10: Driving continued growth through Sephora at Kohl's
Driving continued growth through Sephora at Kohl’s * Achieved significant total beauty sales growth of 150% in Q1 2023, including mid-teens percent comparable beauty sales growth in the 200 Sephora shops opened in 2021 and better than expected performance in the ~400 shops opened in 2022 * In 2023,
Slide 11: 2023 Outlook & Long-Term Strategy
2023 Outlook & Long-Term Strategy
Slide 12: 2023 Outlook
2023 Outlook KOHES+SEPHORA ines (2%) to (4%) versus 2022, Net Sales includes a 1% benefit from the 53rd week Operating Margin Approximately 4.0% EPS $2.10 to $2.70
Slide 13: Long-term
long-term This slide moved up So page numbers messed up from here forward
Slide 14: Committed to Creating Long-Term Value
Committed to Creating Long-Term Value Kohl’s Long-term Financial Framework Low-Single A 5 Mid-to-High Digits % TH to BR Single Digits % Capital Allocation Principles Strong ' Significant Capital Balance Sheet Bist in ferovrth Returns
Slide 15: Q1 2023 Results
Slide 16: Q1 2023 Summary
Q1 2023 Summary Key Takeaways Q1 2023 * Our overall first quarter results were in line * Net sales declined (3.3%) versus Ql] 2022 and comparable sales declined (4.3%) with our expectations and we made * Gross margin increased 67 bps compared to last year driven by a decline in digital-related cost
Slide 17: January 29, 2022 January 29, 2022 January 28, 2023
January 29, 2022 January 29, 2022 January 28, 2023 Twelve Months Ended
Slide 18: Q1 2023 Gross Margin & SG&A Expense Performance
Q1 2023 Gross Margin & SG&A Expense Performance Increased +67 bps vs. Ql] 2022 38.3% Q1 2022 Q1 2023 Q1 2023 Gross Margin Takeaways * Lower digital-related cost of shipping and reduced freight expense * Simplifying our value strategies * Higher product costs driven by inflation + Elevated shrink Lev
Slide 19: Appendix
Slide 20: Reconciliations
Reconciliations Free Cash Flow ($ in millions) April 29, 2023 Three Months Ended April 30, 2022 Three Months Ended Net cash provided by operating activities $ (202) $ (460) Acquisition of property and equipment (94) (221) Finance lease and financing obligation payments (25) (29) Proceeds from financ
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