FACT BOOK - Kohl s by linxiaoqin


									K O H L’S
Quarter Ended May 1, 2010
 Table of Contents
ABOUT KOHL'S                                                                                                      3
OUR HISTORY                                                                                                       4
      STRATEGIC ACTION COMMITTEES                                                                                 7
            MERCHANDISE MIX                                                                                       8
            PRIVATE & EXCLUSIVE BRANDS                                                                            8
            OUR BRANDS                                                                                            9
            NINE-BOX MERCHANDISING GRID                                                                           11
      MARKETING                                                                                                   12
      INVENTORY MANAGEMENT                                                                                        13
      IN-STORE EXPERIENCE                                                                                         14
REAL ESTATE                                                                                                       15
GREEN INITIATIVES                                                                                                 17
FINANCIAL OVERVIEW                                                                                                18
HISTORICAL SALES                                                                                                  20
EXECUTIVE BIOGRAPHIES                                                                                             21
BOARD OF DIRECTORS                                                                                                22
CORPORATE INFORMATION                                                                                             23

This Fact Book is intended to provide background information on Kohl’s Corporation. It should be read in
conjunction with the company’s news releases and filings with the U.S. Securities and Exchange
Commission (SEC). These are available on the SEC website at www.sec.gov, from commercial
document retrieval services, and on our corporate website at www.Kohls.com.
This Fact Book contains “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Kohl's intends forward-looking terminology such as “believes,” “expects,”
“may,” “will,” “should,” “anticipates,” “plans,” or similar expressions to identify forward-looking statements.
Such statements are subject to certain risks and uncertainties, which could cause Kohl's actual results to
differ materially from those anticipated by the forward-looking statements. These risks and uncertainties
include, but are not limited to, those described in Item 1A in Kohl’s Annual Report on Form 10-K for the
fiscal year ended January 30, 2010, which was filed with the SEC on March 19, 2010 and which is
expressly incorporated herein by reference, and other factors as may periodically be described in Kohl's
filings with the SEC. Forward-looking statements in this Fact Book will not be updated so it is possible
that such material is no longer current.


About Kohl’s

To be the leading family-focused, value-oriented, specialty department store offering
quality exclusive and national brand merchandise to the customer in an environment
that is convenient, friendly and exciting.


National Corporate Awards
  • Top Retailer for Customer Satisfaction, Ranked #3 by the University of Michigan’s American
     Customer Satisfaction Index (ACSI)
  • Top Retailers for Customer Service, Ranked #10 by the National Retail Federation
  • Best Places to Launch a Career, Ranked #50 by BusinessWeek magazine
  • Most Reputable U.S. Companies, Ranked #27 by Forbes magazine
  • Top 100 Companies with Highest Corporate Integrity, Ranked #10 by Forbes magazine and Audit
  • Multinational Companies According to their Ethical Ranking, Ranked #22 in the retail sector by
        Geneva-based Covalence
  • America’s 100 Best Corporate Citizens, Ranked #42 by Chief Responsibility Officer magazine
  • America’s Most Admired Companies, Ranked #5 in General Merchandiser’s Category by Fortune

Corporate Social Responsibility Awards (Green)
  • ENERGY STAR Partner of the Year for Energy Management
  • EPA Green Power Partner of the Year
  • EPA Green Power Leadership Award
  • EPA SmartWay Shipper Excellence Award
  • The Greenest Big Companies in America, Ranked #1 in retail sector by Newsweek magazine
  • Clean Air Excellence Award – Gregg Cook Visionary Award
  • Healthiest Department Store, by Health magazine

  • Benefactor’s Award, Penfield Children’s Center
  • WPCA Recognition Award, Wisconsin Partners for Clean Air
  • Business Partner of the Year, United Way Volunteer Center in Waukesha County


Our History
1962 The story of our company began in 1962 when Max Kohl opened the first Kohl’s
Department Store in Brookfield, Wisconsin. He started his career with a small grocery
business that developed into the largest supermarket chain in the Milwaukee area.
Then he expanded into retail, creating Kohl’s Department Stores. He positioned Kohl’s
between the higher-end department stores and the discounters, selling everything from
candy to engine oil to sporting equipment.
1978 BATUS, Inc., the U.S. division of BAT Industries, (British American Tobacco)
PLC, purchased an 80 percent stake in the Kohl’s Food and Department Stores and
took complete control of the company. At that time, the Kohl family withdrew from the
operations of the company.
1983 BATUS, Inc. sold Kohl’s Food Stores to Great Atlantic and Pacific Tea Company
(A&P). A&P closed the Kohl’s food stores in 2003.
1986 A management-led group of investors formed Kohl's Corporation and acquired
Kohl's Department Stores from BATUS, Inc. At that time, we operated 40 stores with
annual sales of $300 million and over 5,000 Associates.
1987 Kohl’s ranked 8th in Wisconsin’s top 100 privately owned companies. Over 80
percent of our merchandise carried national brand names recognized for quality –
setting the company apart from mass merchandisers and discounters. The chain
dropped low-volume, low-margin departments such as candy, sewing notions and
sporting goods in favor of higher-margin merchandise such as linens and jewelry.
1988 Our greatest growth to date came with the purchase of 26 Main Street stores
from Federated Department Stores. This acquisition increased our store count to 66
stores and enabled us to move into new markets in Michigan, Minneapolis/St. Paul and
1988 – 1992 Our sales increased from $388 million to $1 billion.
1992 We took a major step in preparing for our future growth by becoming a public
company when we completed an initial public offering of 11.1 million shares, one of
Wisconsin’s largest initial offerings. We began
expanding and upgrading our distribution facilities,
automating merchandise handling and developing plans
to open 14-16 new stores each year.
Our distribution center in Menomonee Falls, Wisconsin,
which supplied our stores with 98 percent of their
merchandise, was expanded to 500,000 square feet.
This was enough capacity to service 120 stores.

From 1992 to 1999 We more than tripled our number
of stores to 259, while our revenues quadrupled, from
$1.1 billion to $4.6 billion. Our stock split two for one in
April 1996.


Our History
1998 Kohl’s joins the S&P 500. Our stock splits two for one in April.
1999 Our fourth distribution center was completed in Blue Springs, Missouri. It had
capacity for 80 to 100 stores and served the South Central part of the country.
2000 We operated 298 stores in 25 states with 43,000 Associates. We targeted
several new markets, entering the Northeast, including Connecticut, New Jersey and
the New York metropolitan area. We added an e-commerce fulfillment center in Monroe,
Ohio. Our stock split two for one in March.
2001 We entered the fast growing Atlanta market with 15 stores. Other new markets
included Arkansas, Oklahoma City, Austin, Fayetteville and El Paso. To facilitate this
drive into the South Central part of United States, we opened a fifth distribution center in
Corsicana, Texas.
The introduction of Kohls.com brought online shopping to our customers, providing the
added convenience of shopping from home.
2002 We entered the Boston and Houston markets and also opened our first stores in
New Hampshire and Rhode Island, as well as in Nashville, Tennessee.
We introduced a new store prototype designed for smaller markets. A new distribution
center opened in Mamakating, New York to support the Northeast region. Net sales
were $9.1 billion in 2002.
2003 Our then CEO Larry Montgomery was appointed chairman of the board of
We opened 28 stores in California, giving our company a coast-to-coast presence for
the first time in our history. These stores were supported by a new distribution center in
San Bernadino, California. In late 2003, we continued our Southwest expansion, with
new stores in Arizona and Nevada bringing our total to 542 stores.
2005 We opened 95 stores in both new and existing markets, operating 732 stores in 41
states at the end of the year, supported by 107,000 Associates. New markets included
Buffalo, NY and Orlando & Jacksonville, FL. To support this new southeastern push, we
opened our eighth distribution center in Macon, GA.
2006 We opened 85 new stores, including our expansion into the Northwest with new
stores in Oregon and Washington. We now operated in every region of the country. To
support this new region, as well as our continuing growth in the Southwest, we opened
our ninth distribution center in Patterson, California, with the capacity to support 110
stores. By the end of the year, we operated 817 stores in 47 states with 114,000


Our History
2006, continued We introduced a new innovation store design. From the exterior
showcase windows displaying the latest fashions, to creative merchandise displays
highlighting the newest trends, the innovation stores encouraged our shoppers to
browse every department.
We expanded our collection of exclusive lines with the introduction of Tony Hawk and
Chaps for women and boys.
2007 In September, we introduced the Food Network brand and launched the highly-
anticipated Simply Vera Vera Wang line. The Simply Vera Vera Wang launch was the
largest launch in our history and was designed in partnership with the celebrated
American designer Vera Wang. The collection spans the entire store, including ready-
to-wear misses’, accessories, jewelry, footwear, intimate apparel and soft home.
2008 We introduced Jumping Beans, a new children’s private brand and Gold Toe, a
national hosiery brand; expanded the Elle brand to all stores nationwide; launched the
Bobby Flay line, an expansion of our Food Network relationship; and launched FILA
Sport, a collection of women’s, men’s and children’s apparel, footwear and accessories.
In August, Kevin Mansell was named President and Chief Executive Officer. Larry
Montgomery, former CEO, remained as Chairman.
2009 We opened our first store in Alaska, expanding our presence to 49 states.
Spring marked the launch of the Dana Buchman and Hang Ten brands. Dana
Buchman is a modern classic brand in women’s apparel, intimate apparel, accessories
and footwear. Hang Ten is a California lifestyle collection for young shoppers. Mudd
launched in junior’s and girl’s just in time for the back-to-school season. LC Lauren
Conrad, a contemporary lifestyle brand, launched in the women's department in
approximately 300 Kohl's stores and Kohls.com in October.
Larry Montgomery, former Chairman of the Board of Directors and CEO, retired after 22
years with Kohl’s. Kevin Mansell was named Chairman of the Board in September and
continues to serve as president and chief executive officer.
2010 Helix, an opening price, contemporary brand, launched in
young men’s tops, fashion bottoms and shorts in February.

LC Lauren Conrad was rolled out to all stores nationwide in March 2010. The
nationwide roll-out was accelerated due to initial success of
the brand.

In April, we announced the expansion of our exclusive ELLE-
branded lifestyle collection into the home category with an
ELLE Décor line of contemporary home furnishings. ELLE
Décor will be available in approximately 350 stores and
Kohls.com beginning in September 2010. ELLE Décor will initially launch with home
and home décor products, including decorative pillows, frames, candles and accent


Strategic Initiatives:
Strategic Action Committees
We have two strategic committees – the Regional Assortment Committee and the In-
Store Experience Committee - which oversee our four strategic initiatives:
   • Merchandise content
   • Marketing
   • Inventory management
   • In-store experience

The mission of the Regional Assortment Committee is to accelerate sales growth by
varying merchandise assortment, marketing and store presentation by region to reflect
the lifestyle preferences and climate needs of our customers. Our goal is to accelerate
customer engagement by region by expanding successful regional initiatives, such as
those used in the Southwest in 2009, to specifically-targeted markets where we believe
we have significant opportunity to take market share. The current goals of the Regional
Assortment Committee are:

   •   Merchandise content - ensure merchandise content is relevant to the lifestyle
       and climate needs of customers in every region

   •   Marketing - drive traffic to the stores, accelerate customer engagement,
       increase customer knowledge & relevancy by region, and aggressively grow
       credit and email databases

   •   Inventory Management and In-Store Experience - create impact to support
       merchandising initiatives through content distortions and merchandise positioning

The mission of the In-Store Experience Committee is to consistently deliver an
improved store experience that generates loyalty and grows market share. We will
accomplish this by measuring our customers’ satisfaction with our:

   •   Environment – supported by electronic signage, our merchandise location
       system, new-store innovation & remodels, and investments in merchandise

   •   Replenishment – improve in-stock position
       through new Kohl’s kiosks, cross shopping,
       pre-clearance consolidation and “found size
       and color” initiatives

   •   Associate interaction – enhanced associate
       interaction with customers through staffing
       analytics, payroll productivity & retention and
       workload efficiencies & technology. We will
       continue to invest savings from replenishment
       and inventory markdown efficiencies on the
       selling floor and at point-of-sale to ensure that
       every customer has a positive shopping experience, every time, in every store.


Strategic Initiatives:
Merchandise Content
Our merchandise mix has not                                               Footwear
                                                            Accessories      8%
changed significantly in recent years.                         10%                                    Women’s
Our current                                             Children’s
mix is reflected in the table                              13%
to the right.

                                                                     Home                     Men’s
                                                                      18%                      19%

Our private and exclusive brands have become an increasingly important component of our
business and differentiate us in the marketplace. Both private and exclusive brands are
“Available Only at Kohl’s.” Private brands are brands that we own. Exclusive brands are
developed through exclusive license agreements.
                              2010                                                     2004
                                                                                                Private &
                                     Private &                                                  Exclusive
                                                                            National             Brands
                                      Brands                                Brands                25%
                                        47%                                  75%

Private brands represent the absolute best value in our stores.
• Price – Our private brands are competitively priced to meet or beat our competition

•    Quality – Our private brands are:
     o Well made and durable so can be worn for years to come
     o Versatile so can be used for multiple wearing occasions
•    Style – Our private brands reflect the most current fashion styles and trends
Exclusive brands
• Consumer awareness and recognition - Before we launch any new exclusive brand, our
   marketing department does a significant amount of customer research to help us
   understand the awareness, attributes, and strength of each brand
•    Strong equity – Our exclusive brands have been developed with World Class partners.
     This equity factor is a key difference in our strategy vs some of our competitors. Each of
     our brands are authorities in their customer segment. For example:
     o LC Lauren Conrad, Simply Vera Vera Wang & Dana Buchman for Womens Fashion
     o Hang 10 for authentic surf and California Lifestyle
     o Tony Hawk – the dominant skate personality
     o Food Network – the kitchen authority
•    Distinct marketing and in-store experience - We create a unique space for each brand in
     our marketing and in-store experience

    INVESTOR RELATIONS     N56 W17000 RIDGEWOOD DRIVE     MENOMONEE FALLS, WISCONSIN 53051              (262) 703-1440

Strategic Initiatives:
Merchandise Content
                             Abbey Dawn - A juniors’ lifestyle brand by award-winning
                             singer/songwriter Avril Lavigne, was introduced in 2008.

                             Apt. 9 - A private brand in casual Men’s and Women’s sportswear
                             launched in fall 2004. The brand was extended into Home in
                             Spring 2006.

                             Bobby Flay - An expansion of the Food Network brand with
                             celebrity talent, featuring Mediterranean influences, bold colors
                             and rich textures was introduced in Spring 2008.

                             Candie’s - First introduced in 2005 and extended into Home in
                             Spring 2006. Candie’s has partnered with superstars such as
                             Hilary Duff, Fergie and, in 2009 and 2010, Britney Spears to
                             promote the hip, young brand.

                             Chaps has been a model of success for our branding initiatives,
                             starting with the launch of Men’s in Spring 2005. Since then, the
                             Chaps brand has been extended throughout the store, including
                             Women’s, Boy’s, and Footwear in Spring 2006, Girl’s in November
                             2006 and Home in May 2007. Bath Accessories, Newborns and
                             Layette Children's wear were added in Fall 2007.

                             Croft & Barrow – One of our first private brands. This classic
                             brand spans Women’s, Men’s, Footwear and Accessories.

                             daisy fuentes – The first of our major successful exclusive brand
                             initiatives was launched in Fashion Apparel, Sleepwear, Jewelry
                             and Accessories in 2004. This brand was expanded into Petites in
                             2006 and into Intimates in 2007.

                             Dana Buchman – This classic lifestyle brand spans several
                             categories, including Women’s apparel, Intimate apparel,
                             Accessories, and Footwear and launched in February 2009.
                             Ultimately, the brand may extend into home, beauty and fragrance

                             ELLE - Exclusive brand of Women’s Apparel was launched in
                             about 300 stores in the first quarter of 2007, added to another 250
                             stores in September 2007 and expanded to all stores in Spring
                             2008. ELLE Décor, a line of contemporary home furnishings
                             including decorative pillows, frames, candles and accent items, will
                             be available in approximately 350 stores and Kohls.com beginning
                             in September 2010.

                             FILA SPORT – Performance and leisure apparel, footwear and
                             accessories for women, men and children was launched in Fall


Strategic Initiatives:
Merchandise Content
                             Food Network - Branded line of home goods was launched in
                             Kohl’s stores nationwide in the third quarter of 2007. The
                             collection includes cookware, dinnerware, kitchen gadgets, cutlery,
                             food storage, pantry ware, kitchen electrics and home textiles.

                             Hang Ten - A California lifestyle collection for young shoppers
                             launched April 2009 in nearly 240 Kohl's stores and Kohls.com,
                             ultimately expanding to all stores nationwide.

                             Helix - An opening price, contemporary, private brand launched in
                             young men’s tops, fashion bottoms and shorts in February 2010.

                             Jumping Beans - A private brand in Infants through little Boys and
                             Girls, was launched in the first quarter of 2008.

                             LC Lauren Conrad – This contemporary lifestyle brand launched
                             in women’s in approximately 30 Kohl’s stores and Kohls.com in
                             October 2009. The initial rollout was so successful that nationwide
                             roll out was accelerated from Fall 2010 to March 2010.

                             MUDD –This multi-year licensing agreement named Kohl’s as the
                             exclusive U.S. retailer – with license to design and produce –
                             MUDD apparel, accessories, jewelry and domestics, beginning
                             July 2009. This partnership expanded Kohl’s existing MUDD
                             merchandise assortment in Kohl’s stores nationwide and

                             Simply Vera Vera Wang - Vera Wang is one of the world’s most
                             well-known designers. The launch of this brand in the third quarter
                             of 2007 was one of the largest in our history with items rolling out
                             in Women’s, Jewelry, Accessories, Intimate Apparel, and Soft
                             Home concurrently.

                             Urban Pipeline – A modern classic, private brand in young men’s
                             and boy’s apparel

                             SO – A modern classic private brand offering wardrobe
                             fundamentals at compelling prices in Junior’s, Intimates,
                             Children’s, Footwear, Handbags & Accessories and Jewelry.

                             SONOMA life + style - Our private sportswear brand was
                             successfully repositioned in Women’s in 2006 and in Accessories
                             & Handbags and Men’s in 2007.

                             Tony Hawk - Designed in partnership with Quicksilver, was
                             introduced in the Young Men’s and Boy’s categories in Spring
                             2006 and subsequently expanded into Footwear, including fashion
                             skate shoes and sandals, in February 2007.


Strategic Initiatives:
Merchandise Content
Several years ago, a group that included Merchants, Product Development, and
Marketing developed a tool to better define our brands as they related to consumer
lifestyles and price tiers. This “Nine-Box Merchandising Grid” or “Lifestyle Matrix” is
used to:
    • Provide clear guide rails for lifestyle and pricing across the business groups
    • Provide clarity and consistency when defining where a brand will live
    • Effectively manage a growing portfolio of businesses
    • Identify opportunity spaces for new businesses

As a result of recent brand launches, we realized the need to provide clarity and
consistency across Brands, so we evolved the matrix by replacing the former “Updated”
lifestyle with the “Modern Classic” lifestyle.
  • Classic - A traditional, timeless look that is smart, put together, and always in style
  • Modern Classic - A more modern classic look that is fundamentally based with
    unique, trend pieces layered on
  • Contemporary - A fashion forward, contemporary look that incorporates the latest


                                                                                    THE MORE YOU

Strategic Initiatives:                                                                KNOW
                                                                                     THE MORE YOU

Marketing                                                                            KOHL’S

Our marketing initiatives are designed to differentiate Kohl’s in the marketplace, while
maximizing the return on our marketing investment. Our current marketing efforts use
“The More You Know, The More You Kohl’s” platform to focus on the value of shopping
at Kohl’s.

•    Emphasize value message by highlighting the various ways in which she can save
     while shopping at Kohl’s
     o Compelling sales events, with no
     o Savings for Kohl’s Charge
     o Kohl’s cash

•    Increase awareness and                      •     Leverage our exclusive brands
     understanding of the Kohl’s charge

•    Highlight our no-exclusion sales            •     Emphasize our flexible, no-hassle
                                                       exchange policy


Strategic Initiatives:
Inventory Management
Our goal is to have the right inventory, in the right store, at the right time. We will
achieve this goal through the following:

• Conservative inventory planning – We are aggressively managing our inventory
  levels in line with our sales expectations and reducing seasonal inventory levels,
  while maintaining levels in basic areas such as hosiery and underwear. This drives a
  better shopping experience for our customer and results in:
   − Less crowding and clearance on the selling floor, making it easier for her to shop
   − Better receipt flow to provide newness and replenish sizes and colors
   − More focused assortments for her to shop
   − Improved gross margin as less inventory is reduced to clearance pricing

• Regional Assortments - We are focused on delivering an assortment that meets her
  needs based on climate and lifestyle, no matter what market our customer lives in.

• Seasonal Transitions – Extend the life of season-appropriate businesses in warmer
  markets by:
   − Setting hot/mild doors earlier than cold markets in categories including shorts,
     swim tops and bottoms, sunglasses, sandals, flip-flops and seasonal home
   − New receipts of “wear now” product in the 3rd quarter
   − Versioning tables and towers in order to reflect more climate-appropriate
     merchandise on these highly productive fixtures

Having the right inventory, in the right store, at the right time will result in Trip
Assurance, meaning she will be confident that she will be able to find what she wants.
We will accomplish this by:
  •   Managing customer choices by having an appropriate number of styles and
      colors based on the fixturing and presentation strategies for each item. In many
      departments, we are carrying fewer choices per fixture, so we can increase our
      depth even with lower overall inventories.
  •   Improving our inventories by size in terms of depth, breadth and location.
  •   Delivering improved service levels for our basic merchandise, and equally as
      important, our fashion merchandise.

Disciplined inventory management also generates significant operational efficiencies:
   • Fewer in-bound receipt units to process
   • Substantially less merchandise to handle in store
   • Fewer markdown units to process

Another important inventory management initiative is to increase our speed-to-market
through our "Concept to Customer" initiative which allows us to develop and deliver
product quicker, while meeting our customers’ needs and remaining trend right. Two
years ago, it took 45 weeks from the start of development to the delivery of products to
the stores. Today, our cycle time is typically 20 to 32 weeks, with our fastest brands
delivering in 12 weeks and reorders in four to six weeks.


Strategic Initiatives:
In-Store Experience
Our goal is to deliver a great shopping experience to our Customers on a consistent
basis throughout the country at all times of the year. Every Customer, Every Time,
Every Store.

Our new and remodeled stores continue to reflect our latest thoughts in store design.
Recent enhancements include new and updated exteriors and point-of-sale stations;
improved fitting rooms, lounges, restrooms and customer service areas; and specialty
fixturing. We have also updated the junior’s, kids, young men’s and shoe departments
and redesigned our center core to improve sightlines throughout the store. Remodels
and new stores in 2010 will contain a dramatically re-designed home area which will
allow us to have more capacity on the sales floor and provide more flexibility in our

Remodel Program
Remodels are also an important part of our in-                                              85
store shopping experience initiative as we                    # of Stores Remodeled

believe it is extremely important to maintain our
existing store base, even in this difficult
economic environment. We have been able to
compress the remodel duration period from 16
weeks to nine weeks over the past two years to
minimize costs and disruption to our stores,
                                                              2008            2009     2010 estimate
benefiting our sales and customer experience.


Real Estate
Our expansion strategy has been, and will continue to be, designed to achieve
profitable growth. At the time of our initial public offering in 1992, we had 79 stores in
the Midwest. As of April 2010, we operated 1,067 stores in 49 states.

          Stores by Region    1992    1997   2002     2006     2007   2008    2009    2010
            Midwest              79    136     196      260     275     290     289     289
            Mid-Atlantic          -     28      57       85      93      99      98     102
            Northeast             -      4      77      124     132     136     140     142
            South Central         -      8      67      106     126     131     135     136
            Southeast             -      6      49      100     125     160     168     169
            West                  -      -      11      142     178     188     228     229
            Total Kohl's         79    182     457      817     929   1,004   1,058   1,067

We opened 9 stores in the first quarter of 2010 and expect to open another 21 stores in
the Fall. We expect that the expansion rate in 2009 and 2010 will be more indicative of
future expansion than our past history. We will, however, continue to focus our future
expansion efforts on opportunistic acquisitions given the current retail environment as
well as fill-in stores in our better performing markets.

                                     Kohl’s 2009


                                               136                    169

                                                             1067 Stores
                                                             49 States


Real Estate
Number of Stores
                 Q1             Q2        Q3        Q4
 2004                589          589       637       637
 2005                669          670       731       732
 2006                749          749       814       817
 2007                834          834       914       929
 2008                957          957     1,004     1,004
 2009              1,022        1,022     1,059     1,058
 2010              1,067

Square Footage (in Thousands)
                                  Gross                                     Selling
                 Q1           Q2        Q3          Q4          Q1       Q2         Q3       Q4
 2004          52,617       52,702    57,386      57,386       45,153   45,256    49,201    49,201
 2005          60,264       60,395    65,766      65,855       51,723   51,831    56,545    56,625
 2006          67,318       67,318    72,752      73,027       57,860   57,860    62,141    62,357
 2007          74,452       74,452    81,228      82,538       63,518   63,518    68,848    69,889
 2008          84,922       84,942    88,979      88,979       71,758   71,771    74,992    74,992
 2009          90,554       90,554    93,370      93,289       76,273   76,273    78,467    78,396
 2010          94,063                                          78,784

Stores by Region
                Mid-         Mid-       North-    South       South-
               Atlantic      west        east     Central      east     West     Total
 2004                 65       221          103        80         64      104       637
 2005                 77       243          117        93         85      117       732
 2006                 85       260          124       106        100      142       817
 2007                 93       275          132       126        125      178       929
 2008                 99       290          136       131        160      188     1,004
 2009                 98       289          140       135        168      228     1,058
 2010                102       289          142       136        169      229     1,067

                 Stores by Ownership (#)                          Stores by Ownership (%)
                                        Ground                              Ground
               Owned        Leased      Leased    Total       Owned  Leased Leased          Total
 2004             180           335         122      637         28%    53%    19%           100%
 2005             231           354         147      732         32%    48%    20%           100%
 2006             265           369         183      817         33%    45%    22%           100%
 2007             327           388         214      929         35%    42%    23%           100%
 2008             363           396         245    1,004         36%    40%    24%           100%
 2009                 372        399       287      1,058        35%      38%       27%      100%
 2010                 375        400       292      1,067        35%      37%       27%      100%

                  Stores by Store Type                      Stores by Location

             Prototype &                           Strip                Free
                Urban       Small        Total    Center       Malls  Standing   Total
 2004               633            4        637       456          53      128      637
 2005               722           10        732       533          55      144      732
 2006               782           35        817       587          61      169      817
 2007               867           62        929       664          64      201      929
 2008               922           82      1,004       717          66      221    1,004
 2009                 966         92      1,058       746         73      239     1,058
 2010                 972         95      1,067       747         73      247     1,067


Green Initiatives
Our Environmental Mission
To be a leading environmentally responsible retailer through focused
resource stewardship by our associates and vendors.

2009 Top Accomplishments                                                            www.kohlgsgreenscene.com
 •       Named #1 greenest retailer in the US and 18th Greenest Company in America by Newsweek magazine
 •       Ranked #1 in retail for green power purchases and #2 overall in the US by the EPA
 •       Kohl’s now purchases renewable energy credits to green 100% of its electricity use
 •       64 Kohl’s locations have achieved LEED certification by the US Green Building Council
 •       The world’s largest retail solar power host with 81 activated solar stores
 •       Received the EPA Green Power Partner of the Year Award
 •       Received the EPA SmartWay Excellence Award for Transportation Efficiency
 •       Received the EPA ENERGY STAR Partner of the Year Award
 •       Sold over 1,000,000 reusable shopping bags at our stores

Recycled Content Within Our Products
When cost effective, it is our goal to use products with recycled content. There are many positive
environmental impacts of using products with recycled content. The very use saves water, energy, landfill
space, oil and even trees. The following is a list of items we purchase for our business operations.
  • Gift Boxes: 100% Recycled Content
  • Restroom Papers: 100% Recycled Content
  • Merchandise Bags: 10-30% Recycled Content
  • E-Commerce Shipping Cartons: 30% Recycled Content
  • Advertising Paper: 20.5% Recycled Content                                 Construction Activity
  • Office Supplies: 12% Recycled Content                                     Pollution Prevention
Kohl's New Store Prototype                                                           Construction disrupts the
Long-term sustainability is a key decision-driver in Kohl's construction.            environment. To minimize the
We make a difference in store construction through sustainable design,               impact and reduce pollution from
construction, energy efficiency and operating practices.                             construction, Kohl's implements a
     •    Construction Activity Pollution Prevention                                 nationwide Storm Water Pollution
     •    Alternative Transportation                                                 Prevention Plan at every new
     •    Heat Island Effect                                                         store location. We work with a
     •    Water-Efficient Landscaping                                                national SWPPP consultant to
     •    Water-Efficient Building                                                   prepare a site-specific erosion-
     •    Construction Waste Management                                              and sedimentation-control plan
                                                                                     for every Kohl's site to control soil
     •    Recycled Building Materials
                                                                                     erosion, waterway sedimentation
     •    Regionally Sourced Building Materials
                                                                                     and airborne dust generation.
     •    Green Power
     •    Building Efficiency & Thermal Comfort
     •    Air Quality & Ventilation
     •    Green Housekeeping
     •    On-Site Recycling

Memberships                                                 •     EPA Climate Leaders
     •    EPA ENERGY STAR                                   •     United States Green Building Council
     •    EPA Green Power Partnership                       •     Business for Social Responsibility
     •    EPA WasteWise                                     •     Wisconsin Partners for Clean Air
     •    EPA SmartWay Transport Shipper

                                       420 ENERGY STAR-rated stores

     INVESTOR RELATIONS        N56 W17000 RIDGEWOOD DRIVE       MENOMONEE FALLS, WISCONSIN 53051         (262) 703-1440

Financial Overview
Our sales have grown by almost 70% over the past seven years, from $10.3 billion in
2003 to $17.2 billion in 2009. Over the same period, gross margin as a percent of sales
has increased almost 500 basis points to 37.8%. Operating Income and Net Income
have increased at a constant annual growth rate (CAGR) of more than 10% between
2003 and 2009.

Net Sales                                                                Gross Margin as a
(in Billions)                                                            Percent of Sales
                                                           $17.2                                                                                37.8%

                                          $16.5   $16.4
                                  $15.6                                                                                               36.9%


                $11.7                                                                    35.2%



                                                                             2003        2004      2005      2006       2007          2008          2009
     2003        2004    2005     2006    2007    2008     2009

Operating Income                                                         Net Income
(in Millions)                                                            (in Millions)
                                  $1,815 $1,804
                                                           $1,712                                                         $1,084


                         $1,416                                                                                                           $885



     2003        2004     2005     2006    2007    2008     2009                2003        2004      2005       2006          2007          2008          2009

   INVESTOR RELATIONS             N56 W17000 RIDGEWOOD DRIVE             MENOMONEE FALLS, WISCONSIN 53051                        (262) 703-1440

Financial Overview
Quarterly Operating Results
                                                            2010          2009        2009          2009         2009
($ in Millions, except per share info)                      First       Fourth        Third       Second         First
Net sales                                            $     4,035    $   5,682    $   4,051    $    3,806    $   3,638
Gross margin                                         $     1,537    $   2,070    $   1,539    $    1,520    $   1,368
Net income                                           $      199     $     431    $    193     $     229     $    137
Diluted shares                                              309           308         308           306          306
Diluted net income per share                         $      0.64    $    1.40    $    0.63    $     0.75    $    0.45

Annual Operating Results

($ in Millions, except per share & per foot info)           2009         2008         2007         2006*         2005
Statements of Operations Data:
Net sales                                             $ 17,178      $ 16,389     $ 16,474     $ 15,597      $ 13,444
Cost of merchandise sold                                  10,680        10,334       10,460        9,922        8,664
Gross margin                                               6,498         6,055        6,014        5,675        4,780
  Gross margin as percent of sales                        37.8%         36.9%        36.5%        36.4%         35.6%
Selling, general and administrative expenses               4,144         3,936        3,697        3,422        2,981
  SG&A as a percent of sales                              24.1%         24.0%        22.4%        21.9%         22.2%
Depreciation and amortization                                590          541          452           388          339
Preopening expenses                                           52           42           61            50           44
Operating income                                           1,712         1,536        1,804        1,815        1,416
  Operating income as percent of sales                    10.0%          9.4%        11.0%        11.6%         10.5%
Interest expense, net                                        124          111           62            41           70
Income before income taxes                                 1,588         1,425        1,742        1,774        1,346
Provision for income taxes                                   597          540           658          665          504
Net income                                            $      991    $     885    $    1,084   $    1,109    $     842

Net income per share:
  Basic                                               $     3.25    $     2.89   $     3.41   $      3.34   $     2.45
  Diluted                                             $     3.23    $     2.89   $     3.39   $      3.31   $     2.43

Operating Data:
E-Commerce revenues                                   $      492    $     356    $     241    $      184    $     114
Comparable store sales growth                               0.4%        (6.9%)       (0.8%)         5.9%         3.4%
Net sales per selling square foot                     $      217    $     222    $     249    $      256    $     252

Balance Sheet Data (end of period):
Working capital                                       $    3,095    $    1,884   $    1,952   $    1,481    $   2,520
Property and equipment, net                                7,018         6,984        6,510        5,353        4,616
Total assets                                              13,160        11,363       10,575        9,046        9,146
Long-term debt and capital leases                          2,052         2,053        2,052        1,040        1,046
Shareholders’ equity                                       7,853         6,739        6,102        5,603        5,956

* 2006 was a 53-week year. Statement of Operations Data includes the impact of the 53rd week. Comparable
store sales growth and Net sales per selling square foot exclude the impact of the 53rd week.

  INVESTOR RELATIONS         N56 W17000 RIDGEWOOD DRIVE    MENOMONEE FALLS, WISCONSIN 53051             (262) 703-1440

Historical Sales
                            Quarter                                        Year-to-Date
             Q1           Q2      Q3             Q4           Q1           Q2       Q3            Q4

Total Sales Dollars (in Millions)
 2007     $ 3,572      $ 3,589      $ 3,825    $ 5,487      $ 3,572    $   7,161    $ 10,986    $ 16,474
 2008        3,624        3,725       3,804      5,235         3,624       7,350      11,153      16,389
 2009        3,638        3,806       4,051      5,682         3,638       7,445      11,496      17,178
 2010        4,035                                             4,035

Total Sales Growth
 2007        11.8%          8.7%       4.8%       0.7%         11.8%       10.2%        8.3%         5.6%
 2008         1.5%          3.8%      (0.6%)     (4.6%)         1.5%        2.6%        1.5%       (0.5%)
 2009         0.4%          2.2%       6.5%       8.5%          0.4%        1.3%        3.1%         4.8%
 2010        10.9%                                             10.9%

Comparable Store Sales Growth
 2007         3.9%          1.3%      (2.6%)     (4.0%)         3.9%        2.5%        0.7%       (0.8%)
 2008        (6.7%)       (4.6%)      (6.7%)     (9.1%)       (6.7%)       (5.6%)      (6.0%)      (6.9%)
 2009        (4.2%)       (2.3%)       2.4%       4.5%        (4.2%)       (3.2%)      (1.3%)        0.4%
 2010         7.4%                                              7.4%

Comparable Store Sales growth is based on sales for stores (including e-commerce sales and
relocated or expanded stores) which were open throughout both the full current and prior year


Executive Biographies
Chairman, President and Chief Executive Officer
Kevin Mansell is responsible for the development and execution of strategic initiatives, day to day
operations, and Kohl's long term growth plan. Mansell also serves as chairman on the Board of

A 28-year veteran of Kohl’s Corporation, Mansell has held a number of progressive positions
within the Company. He joined Kohl’s in 1982 as a divisional merchandise manager and was
promoted to general merchandise manager in 1987. Over the next nine years, his responsibilities
expanded to include merchandise planning and allocation, as well as micromarketing. Mansell
was promoted to senior executive vice president of merchandising and marketing in 1998. The
following year, Mansell was named president and director. In August 2009, he was named
chairman of the board.

Mansell began his career in retail in 1975, joining the Venture Store division of May Department
Stores, where he held a variety of positions in buying and merchandising. Mansell is a native of
St. Louis, Missouri, where he attended the University of Missouri.

Senior Executive Vice President
Don Brennan is responsible for all merchandising divisions, merchandise planning and allocation,
as well as E-Commerce. Brennan joined Kohl’s in 2001 and has previously held positions as
executive vice president, general merchandise manager; and as executive vice president,
merchandise planning and allocation.

Brennan’s retail career began in 1982. Prior to his career with Kohl’s, Brennan was senior vice
president, general merchandise manager, men’s and children’s apparel at Burdines, a division of
Federated Department Stores. Brennan is a native of Illinois, and attended Marquette University.

Senior Executive Vice President
John M. Worthington is responsible for store operations, store administration, merchandise
presentation, loss prevention, real estate, information services and purchasing. Worthington
joined Kohl’s in 1993 and has previously held progressive store operations positions including
executive vice president, director of stores; and senior vice president, territory director for the
northeast region.

Prior to joining Kohl’s, Worthington held leadership positions with Famous-Barr, a division of the
former May Department Stores Company. Worthington is a native of Utah, where he attended
Utah Valley State College.


 Board of Directors
Kevin Mansell                                         Frank V. Sica
Chairman, President and Chief Executive               Managing Partner
Officer                                               Tailwind Capital
Kohl’s Corporation
                                                      Peter M. Sommerhauser
Peter Boneparth                                       Shareholder in the law Firm of Godfrey &
Senior Advisor                                        Kahn, S.C.
Irving Capital Partners
                                                      Stephanie A. Streeter
Steven A. Burd                                        Former Chairman, President and Chief
Chairman, President and Chief Executive               Executive Officer
Officer                                               Banta Corporation
Safeway Inc.
                                                      Nina G. Vaca
John F. Herma                                         Chairman, Chief Executive Officer
Former Chief Operating Officer and Secretary          Pinnacle Technical Resources, Inc.
Kohl’s Corporation
                                                      Stephen E. Watson
Dale E. Jones                                         Former President and Chief Executive Officer
Vice Chairman and Partner of the CEO and              Gander Mountain, L.L.C.
Board Practice in the Americas                        Former Chairman and Chief Executive Officer
Heidrick and Struggles                                Department Store Division of Dayton-Hudson
William S. Kellogg
Former Chairman and Chief Executive Officer
Kohl’s Corporation

    Audit Committee member
    Compensation Committee member
    Governance & Nominating Committee member
    Lead director
    Denotes Chair


 Corporate Information
Kohl's Corporation common stock is traded on the New York Stock Exchange under the
symbol KSS.
Standard & Poors
Kohl's Corporation is an S&P Fortune 500 company.
SIC Code
Independent Auditors
Ernst & Young LLP
Milwaukee, Wisconsin
Transfer Agent and Registrar
To change the name or address on stock certificates* contact:
Wells Fargo Shareowner Services
P.O. Box 64874
St. Paul, MN 55164-0856
Telephone: (800) 468-9716
*Kohl’s associates (current or former) should contact Human Resources to make changes to stock certificates

Corporate Headquarters
Kohl's Department Stores
N56 W17000 Ridgewood Drive
Menomonee Falls, WI 53051
Phone: (262) 703-7000
Investor Information/Annual and Quarterly Reports
For quarterly earnings reports, our periodic filings with the SEC and other investor
information, please visit our Web site at www.KohlsCorporation.com or direct your
inquiries to Investor Relations
Investor Relations                                        Media Relations
Phone: (262) 703-1440                                     Phone: (262) 703-7000
Fax: (262) 703-6143                                       Fax: (262) 703-6501
E-Mail: Investor.Relations@Kohls.com

Upcoming Events
For a listing of upcoming events, including earnings releases and our Annual Meeting of
Shareholders, please visit our Web site at www.KohlsCorporation.com

  INVESTOR RELATIONS      N56 W17000 RIDGEWOOD DRIVE         MENOMONEE FALLS, WISCONSIN 53051      (262) 703-1440


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