Kohl's 2008 Annual Report Download - page 9

unusually heavy snow, ice or rain storms or extended periods of unseasonable temperatures in our markets could
adversely affect our performance by affecting consumer shopping patterns or diminishing demand for seasonal
merchandise.
Our business is seasonal, which could adversely affect the market price of our common stock.
Our business is subject to seasonal influences, with a major portion of sales and income historically realized
during the second half of the fiscal year, which includes the back-to-school and holiday seasons. This seasonality
causes our operating results to vary considerably from quarter to quarter and could materially adversely affect the
market price of our common stock.
We may be unable to source merchandise in a timely and cost-effective manner, which could adversely affect
our sales.
The merchandise we sell is sourced from a wide variety of domestic and international vendors. All of our
vendors must comply with applicable laws and our required standards of conduct. Our ability to find qualified
vendors and access products in a timely and efficient manner is a significant challenge which is typically even
more difficult with respect to goods sourced outside the United States. Political or financial instability, trade
restrictions, tariffs, currency exchange rates, transport capacity and costs and other factors relating to foreign
trade, the ability to access suitable merchandise on acceptable terms, and the financial viability of our vendors
are beyond our control and could adversely impact our performance.
An inability to attract and retain quality employees could result in higher payroll costs and adversely affect
our operating results.
Our performance is dependent on attracting and retaining a large and growing number of quality associates.
Many of those associates are in entry level or part-time positions with historically high rates of turnover. Our
ability to meet our labor needs while controlling costs is subject to external factors such as unemployment levels,
prevailing wage rates, minimum wage legislation and changing demographics. Changes that adversely impact our
ability to attract and retain quality associates could adversely affect our performance.
An inability to open new stores could adversely affect our financial performance.
Our plan to continue to increase the number of our stores will depend in part upon the availability of
existing retail stores or store sites on acceptable terms. Increases in real estate, construction and development
costs could limit our growth opportunities and affect our return on investment. There can be no assurance that
such stores or sites will be available for purchase or lease, or that they will be available on acceptable terms. If
we are unable to grow our retail business, our financial performance could be adversely affected.
Regulatory and litigation developments could adversely affect our business operations and financial
performance.
Various aspects of our operations are subject to federal, state or local laws, rules and regulations, any of which
may change from time to time. We continually monitor the state and federal employment law environment for
developments that may adversely impact us. Failure to detect changes and comply with such laws and regulations
may result in an erosion of our reputation, disruption of business and/or loss of employee morale. Additionally, we
are regularly involved in various litigation matters that arise in the ordinary course of our business. Litigation or
regulatory developments could adversely affect our business operations and financial performance.
Damage to the reputation of our private and exclusive brands could adversely affect our sales.
We develop and promote private and exclusive brands that have generated national recognition. Damage to
the reputations of our private and exclusive label brand names may generate negative customer sentiment,
potentially resulting in a reduction in sales, earnings, and thus shareholder value.
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