Kohl's 2012 Annual Report Download - page 3

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PART I
Item 1. Business
Kohl’s Corporation (the “Company” or “Kohl’s”) was organized in 1988 and is a Wisconsin corporation. As of
February 2, 2013, we operated 1,146 family-oriented department stores and a website (www.Kohls.com) that sell moderately
priced apparel, footwear and accessories for women, men and children; soft home products such as sheets and pillows; and
housewares. Our product offerings include quality private and exclusive brands which are found “Only at Kohl’s” as well as
national brands which appeal to classic, modern classic and contemporary customers. Our stores generally carry a consistent
merchandise assortment with some differences attributable to regional preferences. Our website includes merchandise which is
available in our stores, as well as merchandise which is available only on-line.
Our fiscal year ends on the Saturday closest to January 31st each year. Unless otherwise stated, references to years in this
report relate to fiscal years rather than to calendar years. The following fiscal periods are presented in this report.
Fiscal Year Ended Number of
Weeks
2012............................................................................................................ February 2, 2013 53
2011............................................................................................................ January 28, 2012 52
2010............................................................................................................ January 29, 2011 52
For discussion of our financial results, see Item 7, “Management’s Discussion and Analysis of Financial Condition and
Results of Operations.”
Merchandise
Our merchandise mix by line of business and brand type over the last three years are reflected in the table below:
2012 2011 2010
Line of Business
Women’s....................................................................................................... 31% 31% 31%
Men’s............................................................................................................ 19% 19% 19%
Home............................................................................................................ 18% 19% 19%
Children’s..................................................................................................... 13% 13% 12%
Accessories................................................................................................... 10% 10% 10%
Footwear....................................................................................................... 9% 8% 9%
Total.............................................................................................................. 100% 100% 100%
Brand
Private and Exclusive................................................................................... 52% 50% 48%
National........................................................................................................ 48% 50% 52%
Total.............................................................................................................. 100% 100% 100%
Our private brands generally are at lower price-points than our other brands. Most of our private brands are well-known
established brands such as Apt. 9, Croft & Barrow, Jumping Beans, SO and Sonoma Life + Style. Exclusive brands generally
are at higher price-points and are developed and marketed through agreements with nationally-recognized brands. Examples of
our exclusive brands include Food Network, Jennifer Lopez, Marc Anthony, Rock & Republic and Simply Vera Vera Wang.
We frequently launch new brands in order to maintain freshness in our inventory assortment and drive customer traffic to
our stores and website. In 2012, we launched Rock & Republic and Princess Vera Wang. In 2011, we launched the Jennifer
Lopez and Marc Anthony brands, the largest launch in our company history. Recently, we have launched our DesigNation
concept, which will feature limited-edition collections from premier designers including Narciso Rodriguez which launched in
November 2012. In Spring 2013, we will feature a collection by Derek Lam.