Kohl’s Confirms Receipt of Expressions of Interest

Fourth Quarter Fiscal 2023 - Financial Results: *Net sales of $4.3 billion were up 1% compared to last year, inclusive of an estimated 2 percentage points of negative impact from the sale of Gap China. The addition of the 53rd week contributed approximately 4 percentage points of growth to the fourth quarter. -Comparable sales were flat year-over-year. -Store sales increased 4% compared to last year. -Online sales decreased 2% compared to last year and represented 40% of total net sales. *Gross margin was 38.9%, an increase of 530 basis points versus last year. -Merchandise margin increased 500 basis points versus last year primarily driven by lower commodity costs and improved promotional activity during the quarter. -Rent, occupancy, and depreciation (ROD) as a percent of sales leveraged 30 basis points versus last year. *Net income of $185 million; diluted earnings per share of $0.49.

Fueled by huge gains for a host of Dr. Seuss titles, as well as solid results for several new books, unit sales of print books soared 34.2% in the week ended Mar. 6, 2021, over the comparable week in 2020, at outlets that report to NPD BookScan. Unit sales jumped 57.9% in juvenile fiction over the week ended Mar. 8, 2020, as Dr. Seuss titles took eight of the top 10 spots on the category list. The Cat in the Hat led the way, selling about 105,000 copies in the week, compared to 22,000 copies in the first week of March last year. Green Eggs and Ham followed, selling about 90,000 copies, trailed by One Fish Two Fish Red Fish Blue Fish (88,000); Oh, the Places You’ll Go! (74,000); and Fox in Socks (64,000). Interest in these books was heightened by the announcement by Dr. Seuss Enterprises that it will stop printing six other Dr. Seuss titles written between 1937 and 1976 because of concerns that they “portray people in ways that are hurtful and wrong.”

FY23 fourth quarter service performance scores covering July 1 through August 25, included: *First-Class Mail: 91.5 percent of First-Class Mail delivered on time against the USPS service standard, a decrease of 1.1 percentage points from the fiscal third quarter. *Marketing Mail: 95.3 percent of Marketing Mail delivered on time against the USPS service standard, consistent with performance from the fiscal third quarter. *Periodicals: 86.2 percent of Periodicals delivered on time against the USPS service standard, a decrease of 2.7 percentage points from the fiscal third quarter.