Slide 1: Q2 2021 Results Presentation
Exhibit 99.2 Q2 2021 Results Presentation August 19, 2021Exhibit 99.2 Q2 2021 Results Presentation August 19, 2021
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. Words such as believes, anticipates, plans, may, intends, will, should, expects, and similar expressions are in
Slide 3: Presentation agenda
Q2 2021 Results 10 Driving Top Line Growth Presentation Q2 2021 Results 4 Updated 2021 Outlook 9 Our Strategy 11 3Q2 2021 Results 10 Driving Top Line Growth Presentation Q2 2021 Results 4 Updated 2021 Outlook 9 Our Strategy 11 3
Slide 4: Q2 2021 Results
Q2 2021 Results 4Q2 2021 Results 4
Slide 5: Q2 2021 Results Key Takeaways
Q2 2021 Results Key Takeaways • Delivered record Q2 earnings as both sales and margins materially exceeded expectations • Growth in the quarter was driven by higher store sales as customer traffic further improved • Achieved highest Q2 operating margin in a decade through an intense focus on invento
Slide 6: Q2 Key Metrics
Q2 Key Metrics Consolidated Statement of Operations Three Months Ended (Dollars in Millions) July 31, 2021 August 1, 2020 Net Sales $ 4,223 $ 3,213 Total Revenue 4,447 3,407 Gross Margin Rate 42.5% 33.1% SG&A 1,241 1,050 Depreciation 210 219 Impairments, Store Closings, and Other Costs — (2) (Gain)
Slide 7: Q2 2021 Gross Margin & SG&A Expense Performance
Q2 2021 Gross Margin & SG&A Expense Performance Gross Margin SG&A Expense Increased 942 bps versus Q2 2020 and 373 bps versus Q2 2019 SG&A leveraged 291 bps versus Q2 2020 and 74 bps versus Q2 2019 42.5% $1,269M $1,241M 38.8% 33.1% $1,050M % Total Revenue 28.6% 30.8% 27.9% Q2 2019 Q2 2020 Q2 2021 Q2
Slide 8: Enhanced Liquidity Position
Enhanced Liquidity Position Key Balance Sheet & Cash Flow Items: Q2 2021 January 31, 2021 Beginning Cash $2,271M Key Takeaways Sources • Strong earnings performance and cash flow generation further improved leverage profile Operating Cash Flow $1,692M • Accelerated share repurchases, underscoring ou
Slide 9: Updated 2021 Outlook
Updated 2021 Outlook 9
Slide 10: Updated 2021 Outlook
Updated 2021 Outlook Metric Full Year Guidance Low twenties percent increase Net Sales versus 2020 From a mid-to-high teens percent increase 7.4% to 7.6% Operating Margin From 5.7% to 6.1% $5.80 to $6.10 * Adjusted EPS From $3.80 to $4.20 Capital Allocation Strategy • Capex: $600 million to $650 mil
Slide 11: Our Strategy
Our Strategy 11Our Strategy 11
Slide 12: Kohl's has built a powerful foundation
Kohl’s has built a powerful foundation Customers Digital Digital sales 40% penetration in 2020 Active Customers 65M Website visits 1.6B in 2020 Loyalty Members 30M Kohl’s Charge Stores 29M Card holders $5.9B 90% 95% $4.5B $4B of stores of Kohl’s stores $3.6B generated $1M+ in are off-mall $3B $2.7B
Slide 13: Our Strategy
Our Strategy The most trusted retailer of choice for the active and casual lifestyle Expand Disciplined Strong Operating Capital Organizational Margin Management Core Drive Top Line Growth Destination for Differentiated Agile, Active & Casual Leading with Omni-channel Operating Margin Maintain Stron
Slide 14: Driving top line growth
Driving top line growth Grow Active to Beauty Growth Reignite Extend Casual 30% of Sales with Sephora Women’s Growth Lifestyle to Home • Fuel growth with key national • Highly complementary strategic • New organization structure and • Expand soft home category brands, Nike, Under Armour and partners
Slide 15: Driving top line growth: omni-channel and loyalty
Driving top line growth Investing in Omni-channel Loyalty Members are Transforming the Role Enhance Digital Capabilities More Productive of the Store to Drive Growth • New Kohl’s Rewards loyalty program, added • Modernizing the store experience through refresh • Continue to invest in the evolution o
Slide 16: Strong execution positions us to achieve 2023 strategic goals
Strong execution against our new strategy positions us to achieve our 2023 strategic goals well ahead of our plan SG&A Operating Gross Margin Expense Rate Margin ~36% Goal ~27% to ~28% Goal 2021 Guidance of +20 to +40 basis points 7.4% to 7.6% is at +70 to +150 basis points increase mid-point of 202
Slide 17: Balanced capital allocation strategy
We have a history of strong cash flow generation along with a focus on maintaining a balanced capital allocation strategy Maintain strong balance sheet Long-term objective of maintaining Investment Grade rating 1 2 3 4 Opportunistic, Share Invest in Dividend complementary repurchases the business M&
Slide 18: Kohl's Continued Commitment to ESG
Kohl's Continued Commitment to ESG Kohl's has a long-standing focus on Environmental, Social and Governance stewardship Excellence Award Recipient 2020 Environmental Governance Social With a large retail footprint, we are in a unique position Understanding and embracing differences for Kohl’s We hol
Slide 19: Appendix
Appendix 19Appendix 19
Slide 20: Reconciliations: Adjusted Net Income and Diluted EPS
Reconciliations Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share, Non-GAAP Financial Measures (unaudited) Three Months Ended (Dollars in Millions, Except per Share Data) July 31, 2021 August 1, 2020 Net Income (Loss) GAAP $ 382 $ 47 Impairments, store closing, and other — (2) (Gain)
Slide 21: Reconciliations: Adjusted Operating Income and Free Cash Flow
Reconciliations Adjusted Operating Income Free Cash Flow ($ in millions) ($ in millions) July 31, 2021 2019 Three Months Ended Six Months Ended Net cash provided by operating activities $ 1,414 $ 1,692 Operating Income $ 1,099 Impairments, store 113 Acquisition of property and equipment (132) (191)
Slide 22: Slide 22