Kohl's 2011 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.
We operate family-oriented department stores that sell moderately priced apparel, footwear and accessories for
women, men and children; soft home products such as sheets and pillows; and housewares. Our stores generally
carry a consistent merchandise assortment with some differences attributable to regional preferences. Our stores
feature quality private and exclusive brands which are found “Only at Kohl’s” as well as national brands. Our
apparel and home fashions appeal to classic, modern classic and contemporary customers. As of January 28,
2012, we operated 1,127 stores in 49 states.
Our merchandise mix over the last three years is reflected in the table below:
2011 2010 2009
Women’s ........................................................ 31% 31% 31%
Men’s ........................................................... 19% 19% 19%
Home ........................................................... 19% 19% 19%
Children’s ........................................................ 13% 12% 13%
Accessories ....................................................... 10% 10% 10%
Footwear ......................................................... 8% 9% 8%
Total ............................................................ 100% 100% 100%
In addition, Kohl’s offers on-line shopping on our website at www.Kohls.com. Launched in 2001 as an
added service for customers who prefer to shop using the internet, the website has grown to include a selection of
items and categories beyond what is available in stores, with a primary focus on extended sizes, product line
extensions, and web-exclusive product lines. The website is designed to provide a convenient, easy-to-navigate,
on-line shopping environment that complements our in-store focus.
An important aspect of our pricing strategy and overall profitability is a culture focused on maintaining a
low-cost structure. Critical elements of this low-cost structure are our unique store format, lean staffing levels,
sophisticated management information systems and operating efficiencies which are the result of centralized
buying, advertising and distribution.
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
2011 ............................................ January 28, 2012 52
2010 ............................................ January 29, 2011 52
2009 ............................................ January 30, 2010 52
For discussion of our financial results, see Item 7, “Management’s Discussion and Analysis of Financial
Condition and Results of Operations.”
New Brands
New brand launches and announcements in 2011 included:
• Jennifer Lopez and Marc Anthony were launched in September 2011. The Jennifer Lopez collection
launched in multiple departments including women’s sportswear, dresses, handbags, jewelry, shoes,
sleepwear, bedding and bath products. The Marc Anthony collection launched in men’s apparel,
sportswear, dress shirts, neckwear, suit separates, sport coats and shoes.
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