Kohl's 2000 Annual Report Download - page 5

2Kohl’s Corporation
Fiscal 2000 was an outstanding year for Kohl’s. Our increases in
sales and income were some of our highest ever and once again,
our record-breaking results far outpaced many other retailers.
Our ability to deliver this consistently strong performance
is the result of our focus on convenience and value for our
customers, the successful execution of our expansion strategy,
and most importantly, the best Associates in retail. Put these together and
you have the ‘more’ behind “That’s more like it”and the essence of all that we do.
Consistently Strong Performance
From a performance standpoint, ‘more’ means exceeding our goal to
increase sales and earnings by at least 20 percent each year. In 2000,
net sales increased 35 percent to $6.2 billion. Net income rose 44 percent
to $372.2 million or $1.10 per diluted share. Kohl’s also had an excellent
holiday season. Fourth quarter net sales rose 38 percent and net income
increased 48 percent.
Comparable store sales increased nine percent in 2000, consistent with
our average over the past five years and well above the performance of our
direct competitors. We remain focused on increasing our market share and
successfully opening new stores.
Our outstanding performance has resulted in more value for our shareholders.
Our stock price increased from $34.41 per share at the end of 1999 to $68.48
at the end of 2000. Cumulatively, a $1,000 investment in Kohl’s initial pubic
offering in 1992 had grown to over $39,000 at the end of fiscal 2000.
Fast-Paced Growth
‘More’ also describes our expansion strategy. We opened 61 stores in 2000
to end the year with 320 stores. This includes our successful entry into the
tri-state market of New York, New Jersey and Connecticut with 35 stores.
Our success in this market has exceeded our initial expectations and we plan
to continue adding fill-in stores to further strengthen our presence in this region.
This year, we plan to open approximately 60 additional stores. In March
and April, we opened 34 stores, including our entries into Atlanta with
15 stores, Hartford/New Haven with four stores and Fayetteville/Ft. Smith,
Arkansas, with three stores. This fall, we will open approximately 26 stores
and enter the new markets of El Paso, Austin and Oklahoma City.
dear
shareholders:
Thank You to
Bill Kellogg
We are fortunate to have worked with
Bill Kellogg, who retired in January from
his day-to-day operating responsibilities.
In the investment community, Bill is well
known for his vision and leadership in
creating the Kohl’s concept and building
the company from just 40 stores in 1986 to
320 at the end of 2000. Internally, Bill’s
support and commitment to our
Associates is legendary. His philosophy
that ‘people make the difference’ is the
focal point of our culture and the secret
to our success.
We know we speak for everyone
associated with Kohl’s in thanking Bill
for his role in Kohl’s growth, and we look
forward to his continuing counsel as
Chairman of the Board.
From left: Arlene Meier,
Larry Montgomery and Kevin Mansell.