Kohl's 2008 Annual Report Download - page 20

Net sales.
2008 2007 2006
Net sales (in millions) .................................... $16,389 $16,474 $15,597
Number of stores:
Open at end of period ................................. 1,004 929 817
Comparable stores (a) ................................. 817 732 637
Sales growth:
All stores .......................................... (0.5%) 5.6% 16.0%
Comparable stores (a) ................................. (6.9%) (0.8%) 5.9%
Net sales per selling square foot (b) .......................... $ 222 $ 249 $ 256
(a) Comparable stores 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 periods. Fiscal 2006 was a
53-week year. Comparable store sales growth for 2006 is presented for the 52-weeks ended January 27,
2007 and excludes approximately $200 million in sales which were earned in the 53rd week of that year.
(b) Net sales per selling square foot is based on stores open for the full current period, excluding e-commerce.
Fiscal 2006 excludes the impact of the 53rd week.
Net sales for 2008 decreased $85 million, or 0.5%, from 2007. New stores contributed $1.0 billion to the
increase in net sales over the prior year. Comparable store sales decreased $1.1 billion, or 6.9%, as the result of a
5.9% decrease in the number of transactions per store and a 1.0% decrease in average transaction value. We
opened 75 new stores in 2008, 112 stores in 2007 and 85 stores in 2006. As we open new stores, especially in
existing markets, sales may be transfered from existing stores. We estimate that opening new stores in existing
markets negatively impacted comparable store sales by approximately 1% in 2008.
From a line of business perspective, Accessories reported the strongest comparable store sales with strength
in sterling silver jewelry and accessories/handbags. Children’s, Men’s and Footwear outperformed the
company’s comparable store sales for the year, while Women’s and Home trailed the company.
The Northeast, Midwest and Mid-Atlantic regions reported the strongest comparable store sales for 2008.
E-commerce revenues increased 48% to $356 million for 2008 as we continue to expand the selections offered on-line.
Net sales per selling square foot decreased 11% to $222 in 2008. The decrease is primarily due to the decrease
in comparable store sales. The remaining decrease is attributable to the percentage of stores opened in southern
regions in 2007. The southern regions have been impacted more by the economic downturn than other regions.
Net sales for 2007 increased $877 million, or 5.6%, over 2006. New stores contributed $998 million to the
increase in net sales over the prior year. Comparable store sales decreased $121 million, or 0.8%, as the result of a
1.4% decrease in the number of transactions per store, partially offset by a 0.6% increase in average transaction
value. From a line of business perspective, Accessories reported the strongest comparable store sales in 2007 with
strength in beauty and jewelry. Men’s and Footwear outperformed the company for the year, while Women’s and
Home trailed the company. The Northeast region led our comparable store sales for 2007. E-commerce revenues
increased 31% to $241 million for 2007 as we continued to expand the selections offered on-line.
As reflected in the table below, our merchandise mix has remained relatively constant over the last three years:
2008 2007 2006
Women’s ................................................ 32% 33% 33%
Men’s ................................................... 19 19 19
Home ................................................... 18 18 18
Children’s ................................................ 13 13 13
Accessories ............................................... 10 99
Footwear ................................................. 888
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