Slide 1: Kohl's Q1 2024 Results Presentation
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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; Q1 2024 Results
16 Our Strategic Priorities 2024 Outlook & Long-Term Strategy Q1 2024 Results
Slide 4: CEO commentary on first quarter results
“Our first quarter results did not meet our expectations and are not reflective of the direction we are heading with our strategic initiatives. Regular price sales increased year-over-year, with early success in underpenetrated categories, positive trends in our Women’s business, and continued stron
Slide 5: Kohl's is building on a solid foundation
Kohl's is building on a solid foundation Convenient Nationwide Omni-Channel Reach 1,176 Stores Largest department store chain in America © 80% of Americans live é . within 15 miles of a Kohl's store ° 9 no -~/ =P 9 al Ee aa a ) y 20M+ Active App Users Sephora @ Kohl's 60M+ Customers 29% ‘ (°) Digita
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 $2B+ Sales Goal by 2025 140 ¢ Total Sephora at Kohl's sales increased 60% in QI, including comparable Opnnte neces sales growth of more than 20% * Strong growth across offering and especially in our skincare, bath & body, and fragrance offerings driven in p
Slide 9: Building early success in underpenetrated categories
Building early success in underpenetrated categories oe | Underpenetrated categories represent a more than $2 billion sales opportunity Delivered incremental sales from our expanded assortments in home decor and pet Gifting sales in Q1] increased more than 30% driven by strong performances across Va
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 (2%) to (4%) vs. 2023 Comp Sales (1%) to (3%) vs. 2023 SEPHORA +KOHES: TEK GEAR Operating : 3.0% to 3.5% Margin Diluted EPS ~— $1.25 to $1.85 Capital Allocation Outlook * Capex: Approximately $500 million * Dividend: $0.50 quarterly dividend payable o
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 to be retired in June 2024 $275M of notes retired
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% Capital Allocation Principles Strong ; Significant Capital Balance Sheet lnvecclin eleva Returns
Slide 16: Q1 2024 Results
Q1 2024 Results
Slide 17: Q1 2024 Summary
Q1 2024 Summary Key Takeaways Q1 2024 * Ql results were below our expectations * Net sales declined (5.3%) versus Q1 2023 and comparable sales declined (4.4%) ‘ Ain , : with a 2.4% increase in regular price sales * Gross margin increased 48 bps compared to last year driven by strong inventory manage
Slide 18: Q1 2024 Gross Margin & SG&A Expense Performance
Q1 2024 Gross Margin & SG&A Expense Performance [crossmarsin Increased 48 bps vs. Q] 2023 Deleveraged (166 bps) vs. Q1 2023 39.0% $1,238M $1,228M % Total 5 Revenue 36.3% Ql 2023 Ql 2024 Ql 2023 Q1 2024 Q1 2024 Gross Margin Takeaways Ql 2024 SG&A Takeaways * Strong inventory management + Disciplined
Slide 19: Q1 Key Metrics
Q1 Key Metrics Consolidated Statement of Operations Three Months Ended (ollars in Millions) May 4, 2024 April 29, 2023 Net Sales $ 378 $ 3,355 Total Revenue 3,382 3571 Gross Margin Rate 39.5% 39.0% SGRA 1.228 1.238 Depreciation 188 188 Operating Income a3 98 Interest Expense 83 84 (Benefit) Provisio
Slide 20: Appendix
Appendix
Slide 21: Make-whole call on May 2025 bonds in Q2 2024
● Executing a make-whole-call on May 2025 bonds in Q2 2024 to reduce long-term debt by $113M (1) Coupon reflects incremental 125 bp step ups on May 2025 and May 2031 bonds
Slide 22: Reconciliations
Reconciliations Key Cash Flow Items (Dollars in Millions) May 4, 2024 Three Months Ended April 29, 2023 Three Months Ended Net Cash Used in Operating Activities $ ” $ (202) Capital Expenditures 126) (94) Free Cash Flow (133) (296) Finance lease and financing obligation payments (21) (25) Proceeds fr
Slide 23: Kohl's