Kohl's 2001 Annual Report Download - page 13

Kohl’s went public in 1992 with the objective of
building value for our shareholders over the long term.
Our record of consistently strong financial results
is reflected in the performance of Kohl’s stock.
Shareholders who invested $1,000 in Kohl’s initial public
offering in May 1992 have seen their investment grow
to more than $37,000 at the end of fiscal 2001. This
results in a compounded annual growth rate of 45%.
Over this time period, our shareholders have participated
in three stock splits as a result of our success.
Consistent Growth
The increasing value of Kohl’s shares reflects
the successful execution of our growth strategy and
our consistently strong financial performance.
While many companies can grow the top line, consistent
increases in earnings are more difficult to achieve.
Kohl’s goal has always been to grow both the top line
and bottom line at 20% per year. We have exceeded
this goal year after year. Sales have grown at a compounded
annual growth rate of 23.8% since 1992, while net
income has grown 32.7% as a result of the increased
sales and our emphasis on controlling expenses. Over
the last ten years, our comparable store sales increase
has averaged 8.4% per year.
The last five years have been even more impressive, with
sales growing at an annual compounded growth rate of
25.7% and net income at 37.2%. This growth has been
driven by a combination of increases in comparable
store sales and the contribution from our new stores.
Another important financial measure is return on
investment. We set a goal of achieving a 20% return
on investment each year. In 2001, we exceeded our
goal, generating a 21% return on investment.
We remain committed to continuing our successful
expansion strategy and maintaining our goal of a 20%
return on investment.
Strong Capital Structure
Kohl’s capital structure is well positioned to support our
expansion plans. Internally generated cash flow continues
to be our most important source of capital and, along
with our ability to access the capital markets, provide
funding for our expansion plans. A key to our access
to liquidity and capital markets is maintaining strong
investment-grade debt ratings. Currently, our long-term
debt is rated A3 by Moody’s and A- by Standard & Poor’s.
In recognition of our growth and strong performance,
Kohl’s was added to the Standard & Poor’s 500 Index
in 1998.
As we continue to execute our expansion strategy, our
commitment to building shareholder value will remain
the cornerstone for our future growth.
11
Since o ur Initial Public Offering in 1992, Ko hl’s has be co me
a leading natio nal retailer with a reco rd of co nsistently strong
financ ial perfo rmanc e.
0101009998979695949392
28.7%
CAGR*
$0.15 $0.19 $0.23 $0.27 $0.34
$0.45
$0.59
$0.77
$1.10
$1.45
Dilut ed Earnings Per Share( 1 )
* Co mpo unded annual growth rate.
( 1) Excludes no n-recurring c harges and extrao rdinary items.
Adjusted fo r sto c k splits in 19 96, 1998 and 2000.