Kohl's 2004 Annual Report Download - page 14

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Financial Summary
FISCAL YEAR 2004 2003(a) 2002(a) 2001(a) 2000(a) 1999(a)
SUMMARY OF OPERATIONS (In millions)
Net sales $11,701 $10,282 $9,120 $ 7,489 $ 6,152 $ 4,557
Gross margin 4,114 3,395 3,139 2,565 2,096 1,543
Selling, general & administrative expenses 2,540 2,102 1,827 1,535 1,289 977
Preopening expenses 49 47 41 33 36 33
Depreciation and amortization 288 239 193 159 128 89
Operating income 1,237 1,007 1,078 838 643 444
Interest expense, net 63 73 56 50 46 27
Income before income taxes 1,174 934 1,022 788 597 417
Net income 730 581 635 488 367 255
DILUTED EARNINGS PER SHARE (b) $ 2.12 $ 1.69 $ 1.85 $ 1.43 $ 1.09 $ .76
FINANCIAL POSITION DATA (Dollars in millions)
Working capital $2,187 $ 1,902 $1,776 $ 1,584 $ 1,199 $ 732
Property and equipment, net 3,988 3,316 2,734 2,196 1,725 1,352
Total assets 7,979 6,691 6,311 4,927 3,853 2,930
Long-term debt 1,103 1,076 1,059 1,095 803 495
Shareholders’ equity 4,967 4,149 3,479 2,767 2,185 1,673
Return on average shareholders’ equity 16.0% 15.2% 20.3% 19.7% 19.0% 18.1%
OTHER DATA
Comparable store sales growth 0.3% (1.6)% 5.3% 6.8% 9.0% 7.9%
Net sales per selling square foot $ 255 $ 268 $ 284 $ 283 $ 281 $ 270
Stores open at year end 637 542 457 382 320 259
Total square feet of selling space (In thousands) 49,201 41,447 34,507 28,576 23,610 18,757
REPORT OF MANAGEMENT
The management of Kohl’s Corporation is responsible for the integrity and objectivity of the
financial and operating information contained in this Annual Report, including the consolidated
financial statements covered by the Report of the Independent Registered Public Accounting
Firm. These statements were prepared in conformity with generally accepted accounting principles
and include amounts that are based on the best estimates and judgments of management.
The consolidated financial statements and related notes have been audited by Ernst & Young LLP,
independent registered public accounting firm, whose report is based on audits conducted in
accordance with the standards of the Public Company Accounting Oversight Board (United States).
As part of its audit, the firm performed a review of the Company’s system of internal controls
and conducted such tests and employed such procedures as considered necessary to render its
opinion on the consolidated financial statements. The Company’s consolidated financial statements
including the Report of the Independent Registered Public Accounting Firm are included in the
Company’s Form 10-K for the year ended January 29, 2005.
The Audit Committee of the Board of Directors is composed of three independent Directors. The
Committee is responsible for assisting the Board in its oversight of Kohl’s financial accounting and
reporting practices. The Audit Committee is directly responsible for the compensation, appointment
and oversight of the Company’s independent registered public accounting firm. The Audit
Committee meets periodically with the independent registered public accounting firm, as well as
with management, to review accounting, auditing, internal accounting control and financial
reporting matters. The independent registered public accounting firm has unrestricted access to
the Audit Committee.
Larry Montgomery Wesley S. McDonald
Chairman and Chief Executive Officer Executive Vice President - Chief Financial Officer
99 00 01 02 03 04
$10,282
$11,701
$9,120
$7,489
$6,152
$4,557
NET SALES
(In millions of dollars)
99 00 01 02 03 04
$1.69
$2.12
$1.85
$1.43
$1.09
$0.76
DILUTED EARNINGS
PER SHARE
(a) (b)
20.8%
CAGR*
22.6%
CAGR*
(a) 1999-2003 restated.
(b) Adjusted for stock split in 2000.
*Compounded annual growth rate.
(a) Results for the 1999-2003 fiscal years have been restated to correct the Company’s method of accounting for leases.
(b) Adjusted for stock split in 2000.