Kohl's 2002 Annual Report Download

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Kohl’s Corporation
N56 W17000 Ridgewood Drive
Menomonee Falls, WI 53051-5660
(262) 703-7000
www.kohls.com

Table of contents

  • Page 1
    Kohl's Corporation N56 W17000 Ridgewood Drive Menomonee Falls, WI 53051-5660 (262) 703-7000 www.kohls.com

  • Page 2

  • Page 3
    ... 8 10 Letter to Shareholders Expanding from Coast to Coast Entering New Markets Keeping Stores Fresh and Current Enhancing the Shopping Experience Adding Convenience 12 13 14 16 17 Increasing Community Involvement Valuing Associates Financial Summary Management Statement Corporate Information As...

  • Page 4
    ...the operating margin reached an all-time high of 12.0% of sales. Bottom line, net income increased 29.8% over last year. This follows six consecutive years of earnings growth in excess of 30%. Over the past five years, Kohl's sales have increased 24.4% on a compounded annual growth rate. At the same...

  • Page 5
    ... for Kohl's. To support the expansion into this region, we opened a new distribution center in San Bernardino, California, in December 2002. Building on our new Southern California base, we will further expand our presence in this region with the opening of new stores in the Phoenix, Las Vegas and...

  • Page 6
    ...-line store for those who prefer to shop from home. Kohl's proprietary credit card provides added savings for our customers. Our high quality credit card portfolio functions as a loyalty program that drives sales by bringing customers into our stores through direct mail promotions, special discounts...

  • Page 7
    ...in 2002 - 71 prototype stores and four smaller test stores. We opened 35 stores in new markets including our entries into Boston, Massachusetts; Houston, Texas; Providence, Rhode Island; and Nashville, Tennessee. At the same time, we opened 40 fill-in stores throughout the regions we currently serve...

  • Page 8
    ...Las Vegas with three stores. Together, the Southern California, Arizona and Nevada entries will account for half of our new store openings in 2003, an indication of the strategic significance of these new markets. A new distribution center in San Bernardino, California, which opened in December 2002...

  • Page 9
    ...of television, radio, outdoor, newspaper inserts, magazines and localized community programs, in both English and Spanish, customized our already successful marketing strategies to this new West Coast market. Preparing for new market entries Kohl's process for opening new stores and new markets has...

  • Page 10
    ... remodeled stores, in many cases we also updated the exteriors. The grand reopening of the market in October 2002 had all of the promotional elements and excitement of a new market entry. Extensive print, radio, television and direct mail advertising encouraged customers to "check out the new face...

  • Page 11
    "We listen to our customers and continually identify opportunities to better serve customers of all ages." 8

  • Page 12
    ...our female customers, we expanded the Nine & Company line which we introduced in 2001. This successful assortment is now offered storewide in apparel, shoes, handbags, watches, costume jewelry and sleepwear. In 2002, we introduced the exciting new Axcess line and added Jantzen swimwear for women. We...

  • Page 13
    ... perfect wedding gift either at our in-store kiosks or from the convenience of their home. Credit card loyalty program Our credit card program is a loyalty program that provides our frequent customers with advance notification of sales and special discounts on their purchases 10 times a year. Our...

  • Page 14
    "The Kohl's shopping experience is continually evolving, as we seek new and creative ways to add convenience." 11

  • Page 15
    ... given directly to the charity. We're very proud of all of our Associate volunteers. Kohl's supports the work of designated children's hospitals across the country, including The Children's Hospital at Carolinas Medical Center. Houston and Los Angeles. The Children's Hospital program is supported...

  • Page 16
    ...department stores in the fourth quarter 2002 American Customer Satisfaction Index issued by the American Society for Quality. The numbers tell the story. Over 200 Associates and college students entered our executive training programs in our stores and corporate office in 2002, 60% through internal...

  • Page 17
    ...- 19 57 259 24 235 141 $ .45 2002 2001 2000 1999 1998 1997 Diluted Earnings Per Share (c) Financial Position Data (Dollars in millions) Working capital Property and equipment, net Total assets Long-term debt Shareholders' equity Return on average shareholders' equity $1,776 2,739 6,316 1,059...

  • Page 18
    ...report are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect management's current... 99.1 to Kohl's annual report on Form 10-K and other factors as may periodically be described in Kohl's filings with the SEC...

  • Page 19
    ...Larry Montgomery Chairman and Chief Executive Officer Patricia Johnson Executive Vice President - Chief Financial Officer Kohl's executive management team (left to right). Top photo: Gary Vasques, Jack Moore, Don Brennan and Rick Leto Bottom photos: (left) Rick Schepp, John Lesko and Patti Johnson...

  • Page 20
    ... General Counsel and Secretary Don Sharpin - Executive Vice President Human Resources Gary Vasques - Executive Vice President Marketing Corporate Headquarters Kohl's Corporation N56 W17000 Ridgewood Drive Menomonee Falls, Wisconsin 53051-5660 (262) 703-7000 Web site: www.kohls.com Transfer Agent...