Kohl's 2009 Annual Report Download - page 10

Table of Contents
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 and operating results.
Approximately 20% of the merchandise we sell is sourced through a third party purchasing agent. The remaining merchandise is sourced from a wide
variety of domestic and international vendors. All of our vendors must comply with applicable laws and our required Terms of Engagement. 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, and the ability to access suitable merchandise on acceptable terms are beyond our control and could adversely impact our
performance.
If any of our vendors were to become subject to bankruptcy, receivership or similar proceedings, we may be unable to arrange for alternate or
replacement contracts, transactions or business relationships on terms as favorable as current terms, which could adversely affect our sales and operating
results.
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. In some cases, the brands or the marketing of such
brands are tied to or affiliated with well-known individuals. Damage to
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