Slide 1: Q1 Results Presentation
Q1 Results Presentation May 29, 2025 1
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: Table of Contents
Table of Contents 6 2025 Areas of Focus 10 Q1 2025 Results 15 2025 Outlook 3
Slide 4: Interim CEO quote on building on Kohl's foundation
“I am honored to assume the role of Interim CEO at such an important time for our company. Kohl’s has a tremendous opportunity to build on our strong foundation of over 1,100 conveniently located stores and a large and loyal customer base. “Our first quarter performance was ahead of our expectations
Slide 5: Kohl's is building on a solid foundation
Kohl's is building on a solid foundation Convenient Nationwide Great Product from Top Brands Omni-Channel Reach 1,153 Stores 80% of Americans live Largest department store chain in America (1) within 15 miles of a Kohl’s store 20M+ Delivering Great Value Active App Users 1,100+ Sephora @ Kohl’s (1)
Slide 6: 2025 Areas of Focus
2025 AREAS OF FOCUS =: |
Slide 7: Offer a Curated, More Balanced Assortment That Fulfills Needs Across All Customers
Offer a Curated, More Balanced Assortment That Fulfills Needs Across All Customers Rebalance our assortment to provide improved brand clarity and purpose • Build on the momentum in our jewelry business with continued assortment expansion in gifting and fine jewelry • Established a petites presence i
Slide 8: Reestablish Kohl's as a Leader in Value and Quality
Reestablish Kohl’s as a Leader in Value and Quality Elevating our Proprietary Brands • Substantial opportunity to lean into our value oriented proprietary brands to offer more relevance, exceptional value and great quality to our customers • Sequential improvement quarter over quarter following inve
Slide 9: Enhance our Omni-Channel Platform to Deliver a Frictionless Experience
Enhance our Omni-Channel Platform to Deliver a Frictionless Experience Optimizing Our Store Layout • Optimize store layout through productivity and adjacency analyses • Improved performance and cross-shopping in Accessories & Juniors following store layout changes Restoring Trip Assurance • Provide
Slide 10: Q1 2025 Results
Q1 2025 RESULTS Sone
Slide 11: Q1 2025 Summary
Q1 2025 Summary Key Takeaways • Q1 net sales declined (4.1%) versus Q1 2024 and comparable sales declined (3.9%) • Gross Margin increased 37 bps to last year driven by category mix benefits and continued inventory management • SG&A expense declined (5.2%) benefiting from tightly managed expenses acr
Slide 12: Q1 2025 Gross Margin & SG&A Expense Performance
Q1 2025 Gross Margin & SG&A Expense Performance Gross Margin SG&A Expense Increased 37 bps vs Q1 2024 Leveraged 32 basis points vs Q1 2024 (5.2 %) 39.9% $1,228M 39.5% $1,164M % Total Revenue 36.3% 36.0% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2025 Gross Margin Takeaways Q1 2025 SG&A Takeaways • Category
Slide 13: Adjusted Leverage
Adjusted Leverage Kohl’s reset leases on the balance sheet following the investment to roll out Sephora to all of our Stores Net Debt + Leases to EBITDAR Leverage (1) • Current Balance Sheet / Lease Rolling 12 months as of Q1 2025 Accounting is inflating our (Dollars in Millions) Unadjusted Adjusted
Slide 14: Q1 2025 Key Metrics
Consolidated Statement of Operations Three Months Ended (Dollars in Millions) May 3, 2025 May 4, 2024 Net Sales $ 3,049 $ 3,178 Total Revenue 3,233 3,382 Gross Margin Rate 39.9% 39.5% SG&A 1,164 1,228 Depreciation 175 188 Operating Income 60 43 Interest Expense 76 83 Benefit for Income Taxes (1) (13
Slide 15: 2025 Outlook
2025 OUTLOOK Sone
Slide 16: 2025 Outlook Maintained
2025 Outlook Maintained METRIC FULL YEAR GUIDANCE Net Sales (5%) to (7%) vs. 2024 Comp Sales (4%) to (6%) Operating 2.2% to 2.6% Margin Diluted EPS $0.10 to $0.60 Capital Allocation Outlook • Capex: $400 million to $425 million • Dividend: $0.125 dividend payable on June 25, 2025 • Debt: Refinanced
Slide 17: Capital allocation priorities support our goals of optimizing balance sheet flexibility
Capital allocation priorities support our goals of optimizing balance sheet flexibility Invest in the Business Capex of $400MM to $425MM will include investments to complete the Sephora rollout, expand impulse queuing fixtures, and enhance omni- channel experience Optimizing Return of Cash The Board
Slide 18: Appendix
APPENDIX Sone
Slide 19: Reconciliation
Reconciliation 52 Weeks Ended (Dollars in Millions) May 3, 2025 Net Income $ 121 Provision for Income Taxes 17 Interest expense, net 312 Depreciation and amortization 730 Impairments, store closing and other costs 76 Adjusted EBITDA $ 1,256 19
Slide 20: Kohl's
KOHLES