Slide 1: Kohl's Q3 2023 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: Agenda
Our 2023 Priorities ................... 6 2023 Outlook & Long-Term Strategy ................. 11 Q3 2023 Results... 16
Slide 4: CEO Tom Kingsbury commentary on third quarter earnings
Tom Kingsbury, Kohl’s chief executive officer, said “Kohl’s third quarter earnings reflect strong gross margin and expense management as well as additional progress against our strategic priorities. | am pleased with our store performance driven by strong growth in Sephora and the newness in our hom
Slide 5: Kohl's has built a solid foundation for growth
Kohl's has built a solid foundation for growth Customers a 65M+ Active Customers ap 30M+ Loyalty Members at 3 N §©Accessible and A Aspirational Brand Portfolio — wy SONOMA Jumping KOHLS+SEPHORA | Columbia a BAURGM SIMPLY VERA Le CONRAD VERAWANG, Stores 1,170 900+ 80% ~35% Stores in 49 states as of Q
Slide 6: Our 2023 Priorities
Our 2023 Priorities
Slide 7: Our 2023 Priorities
Our 2023 Priorities Enhance the Accelerate and Manage Inventory Strengthen the Customer Simplify Our and Expenses Balance Sheet Experience Value Strategies with Discipline
Slide 8: Focused on four overarching priorities to drive improved sales and profitability
FOCUSED ON FOUR OVERARCHING PRIORITIES TO Drive Improved Sales and Profitability - rm Enhance the Customer Experience ¢ Sephora growth and expansion * Optimize assortment to reflect customer interests * Create an exciting in-store experience * Focus on home, gifting, and impulse * Drive digital grow
Slide 9: Focus on stores is driving improved performance
Focus on stores is driving improved performance * Re-established stores as a key focal point of our strategy * New leadership focused on driving increased store productivity * Investments in improved merchandising and enhanced customer experience * Favorable customer response to date from our effort
Slide 10: Driving continued growth through Sephora at Kohl's
Driving continued growth through Sephora at Kohl’s $2 billion sales goal by 2025 aes and acquiring new customers * Q3 comparable beauty sales increased more than 30% within Sephora shops opened in 2021 and 2022. Total beauty sales increased more than 70%, driving additional beauty share gains Highly
Slide 11: 2023 Outlook & Long-Term Strategy
20235 Outlook & Long-Term Strategy
Slide 12: 2023 Outlook
2023 Outlook METRIC FULL YEAR GUIDANCE Net Sales (2.8%) to (4%) vs. 2022, includes a 1% benefit from the 53rd week Operating Margin Approx. 4.0% Diluted EPS $2.30 to $2.70
Slide 13: Focused on returning balance sheet to historical strength through balanced capital allocation
Focused on returning balance sheet to historical strength through balanced capital allocation strategy * Committed to rebuilding cash balance and reducing leverage to our long-term target of 2.5x + Will continue to prioritize investments in the business, followed by our commitment to the dividend wi
Slide 14: Committed to Creating Long-Term Value
Committed to Creating Long-Term Value Kohl’s Long-term Financial Framework SALES GROWTH OPERATING MARGIN EPS GROWTH Low-Single 5 6 Mid-to-High Digits % BONEN EE Single Digits % Strong ) Balance Sheet Significant Capital Returns 4 a Invest in Growth
Slide 15: Long-standing focus on ESG stewardship
Long-standing focus on ESG stewardship KOHLES OC ares for People and Planet Environmental, Social, and Governance stewardship is a key component of our strategy and our vision, ~100,000 Associates 8 Business Resource Groups 9 /WORLD’S MOST " S/ETHICAL N COMPANIES 5- TIME HONOREE and guides how we in
Slide 16: Q3 2023 Results
QS 2025 Results
Slide 17: Q3 2023 Summary
Q3 2023 Summary Key Takeaways ¢ Third quarter earnings reflect strong gross margin and expense management as well as additional progress against our strategic priorities ¢ Pleased with store performance driven by strong growth in Sephora and the newness in our home and gifting initiatives * Sephora
Slide 18: Q3 Key Metrics
Q3 Key Metrics Consolidated Statement of Operations (Dollars in Millions) Three Months Ended October 28, 2023 October 29, 2022 Net Sales $ 3,843 $ 4,052 Total Revenue 4,054 4,277 Gross Margin Rate 38.9% 37.3% SG&A 1,360 1,334 Depreciation 188 202 ‘Operating Income 157 200 Interest Expense 89 81 Prov
Slide 19: Q3 2023 Gross Margin & SG&A Expense Performance
Q3 2023 Gross Margin & SG&A Expense Performance Increased +158 bps vs. Q3 2022 Deleveraged (235 bps) vs. Q3 2022 $1,334M $1,360M 37.3% ‘% Total Revenue 33.5% @3 2022 @3 2023 @3 2022 @3 2023 Q3 2023 Gross Margin Takeaways Q3 2023 SG&A Takeaways * Lower freight costs, digital-related cost of shipping,
Slide 20: Appendix
Appendix
Slide 21: Reconciliations
Reconciliations Free Cash Flow ($ in millions) October 28, 2023 Three Months Ended Nine Months Ended Net cash provided by operating activities $ 151 $ 379 Acquisition of property and equipment as7) (495) Finance lease and financing obligation payments (oD) (68) Proceeds from financing obligations 2
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