Slide 1: Q2 2024 Results Presentation
—— = a KOHLS Q2 2024 Results Presentation
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 Strategic Priorities; 2024 Outlook & Long-Term Strategy; Q2 2024 Results
11 16 Our Strategic Priorities 2024 Outlook & Long-Term Strategy Q2 2024 Results
Slide 4: CEO commentary on repositioning Kohl's for future growth
“We have taken significant action to reposition Kohl's for future growth. However, our efforts have yet to fully yield the intended outcome due in part to a continued challenging consumer environment and softness in our core business. During the second quarter, our customers exhibited more discretio
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 4176 Stores 80% Largest department store carter’s aS ; ; y chain in America © of Americans live é within 15 miles of a ig : A SEPHORA+ KOHLS Kohl's store a Sy yg 2 eX fe 9 eS) % z % NINE W
Slide 6: Our Strategic Priorities
Our Strategic Priorities
Slide 7: 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 » Re-establishing stores as key focal point to regain sales productivity * Sephora sales expected to exceed $2 billion by 2025 * $2+ billion of incremental sales opportunity in new catego
Slide 8: Sephora at Kohl's is a beauty share leader
Sephora at Kohl’s is a beauty share leader $1.4B+ $2B+ Sales Goal by 2025 * Total Sephora at Kohl's sales increased approximately 45% in Q2, pecan eed including comparable sales up low teens percent * Strong growth across offering and especially in our skincare, bath & body, and fragrance offerings
Slide 9: Building early success in underpenetrated categories
Building early success in underpenetrated categories Underpenetrated categories represent a significant sales opportunity in the coming years Delivered incremental sales from our expanded assortments in home decor and pet, with seasonal and everyday decor up more than 35% Gifting sales in Q2 increas
Slide 10: Increasing relevancy of apparel & footwear offerings in 2024
Increasing relevancy of apparel & footwear offerings in 2024 Repositioning Juniors offering next to Sephora in stores to better capitalize on cross shopping opportunities in 2024 Q1 2024 with positive sales growth
Slide 11: 2024 Outlook & Long-Term Strategy
2024 Outlook & Long-Term Strategy
Slide 12: 2024 Outlook
2024 Outlook METRIC FULL YEAR GUIDANCE Net Sales (4%) to (6%) vs. 2023 SEPHORA +KOHES: Wi Comp Sales (3%) to (5%) vs. 2023 bh, TEK GEAR Operating 3 3.4% to 3.8% Margin Diluted EPS ~— $1.75 to $2.25 Capital Allocation Outlook * Capex: Approximately $500 million * Dividend: $0.50 quarterly dividend pa
Slide 13: Capital allocation priorities support balance sheet goals
Capital allocation priorities support balance sheet goals | Invest in the Business Support growth-driving initiatives (Sephora, impulse, Babies “R” Us) with capex of ~$500M in 2024 Committed to Dividend Return ~$220M annually to shareholders through $2.00 dividend per share ($0.50 quarterly) Reduce
Slide 14: Strengthening the balance sheet by reducing long-term debt
Strengthening the balance sheet by reducing long-term debt Kohl’s has reduced long-term debt by more than $1 billion since 2017 $2.5 $19 $19 2017-2018 = 2019 2020S 2021: «= 2022S 2023 2024E @ Long-Term Debt at Year End Billions) $113M May 2025 notes retired in June 2024 $275M of notes retired in 202
Slide 15: Committed to Creating Long-Term Value
Committed to Creating Long-Term Value Long-Term Financial Framework Ww Ww SALES GROWTH OPERATING MARGIN Low-single digits % 7% - 8% 2 = Allocation Pri Strong Significant Capital Balance Sheet | Returns
Slide 16: Q2 2024 Results
Q2 2024 Results
Slide 17: Q2 2024 Summary
Q2 2024 Summary Key Takeaways * Q2 performance impacted by a continued challenging consumer environment and softness in our core business ¢ Continued to execute well operationally and delivered a 13% increase in earnings per diluted share ¢ Delivered significant growth in Sephora, home decor, impuls
Slide 18: Q2 2024 Gross Margin & SG&A Expense Performance
Q2 2024 Gross Margin & SG&A Expense Performance fcrossMargin Increased 59 bps vs. Q2 2023 Leveraged 1 basis point vs. Q2 2023 $1,304M 39.0% $1,250M ‘% Total Revenue 33.5% Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2024 Gross Margin Takeaways Q2 2024 SG&A Takeaways * Strong inventory management * Lower store
Slide 19: Q2 Key Metrics
Q2 Key Metrics Consolidated Statement of Operations Three Months Ended (ollars in Millions) August 3, 2024 July 29, 2023 Net Sales $ 3,525 $ 3,678 Total Revenue 3,732 3,895 Gross Margin Rate 39.6% 39.0% SG&A 1,250 1,304 Depreciation 188 186 ‘Operating Income 166 163 Interest Expense 86 89 Provision
Slide 20: Appendix
Appendix
Slide 21: Healthy debt stack with opportunities to address near-term maturities
Healthy debt stack with opportunities to address near-term maturities $500M 4.625% D $353M 4.25% $ IN MILLIONS $427M 5.55% July 2025 2026 2027 2028 2029 2030 2031 2082 2033 2034 2035 2036 2087 21
Slide 22: Reconciliations
Reconciliations Key Cash Flow Items (Dollars in Millions) August 3, 2024 Six Months Ended July 29, 2023 Six Months Ended Operating Cash Flow $ 247 $ 228 Capital Expenditures (239) (338) Free Cash Flow 8 qilo) Finance lease and financing obligation payments (42) (47) Proceeds from financing obligatio
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