Financial Analysis Term Paper

(First 3 Pages)

Introduction About Kohl’s Corp
Based in Menomonee Falls, Wis., Kohl's is a chain, a family centered, value oriented field departmental store presenting reasonably valued national brand outfits, shoes, accessories and household items. The company runs 420 departmental stores in 32 states through out the United States. Kohl's Corporation (NYSE: KSS) nowadays celebrates its 10th anniversary as a public company at its annual meeting of shareholders in Milwaukee. CEO Larry Montgomery expose on the company's verified tracks records of expansion over the previous ten years and proclaimed that the company's development in 2003 will include the establishment of around 40 departmental stores in Southern California, Phoenix and Las Vegas.

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Kohl's corporation is now celebrating its 10 years of progress as a public company, many positive expectations from the company in the year 2003 when more and more stores will be established and would recognize Kohl’s as a national wide dealer with present from one shore to other. K C is more likely to achieve its goal with introducing its series of stores in Southern California during this spring, similarly will also introduce its stores at Phoenix and Las Vegas in the autumn. This continuous development and its strong working during 2001 reveals the strength of its impression and the outstanding implementation of its more than 60,000 Acquaintances."

Financial Review
Kohl's chief operating officer, Arlene Meier recapitulated the company's fiscal 2001 financial functioning, highlighted by a 6.8 percent increase in equivalent store sales, a almost 22 percent increase in entire sales, and a over 33 percent increase in net earnings. Company sustained its strong functioning in the first quarter of fiscal year 2002, exposing comparable store sales increase of 9.1 percent, a almost 26 percent increase in entire sales and 42 percent profit in net income.

From fiscal year 1992 through fiscal 2001, it is concluded that Kohl's was able to gain mean annual comparable store sales increases of 8.4 percent, and compounded annual increase rates of 24 percent for entire sales and 33 percent for net income. Throughout that phase of time, the company also extended store square record at a 22 percent compounded annual growth rate.
For shareholders, that performance translated into a stock price with a compounded annual growth rate of 45 percent from its IPO in 1992 through the end of fiscal 2001. That means that a $1,000 investment in Kohl's IPO would have grown to more than $37,000 as of Jan. 31, 2002.

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More Brands, More Value, More Convenience
Since Kohl's corp. became a public in 1992, its central goal was to maintain quality not the quantity, national brand products at cost offering outstanding value. According to the President Kevin Mansell, Kohl's corp. carry on to enhance its brand collections by adding new, desired brands to the mix as customers tastes and wants alteration. Recent add-ons to the product collection have included Columbia sportswear in 2000, Nine & Company shoes and accessories in 2001, and Oshkosh toys items for kids and Jantzen swimming items in 2002, with Savane male pants scheduled for an August 2002 introduction.
The president also revealed that company has increased its stress on convenience, as this factor has grown in value to Kohl's busy customers. Kohl's sensible locality, store designs, layout, walkway, furniture, point of sale resources and stress on in-stock color and size all are considered to help out clients get in and out of Kohl's stores swiftly.

Keeping Kohl's stores new and current has been an additional center of attention, and Mansell piercing out that the company try hard to update its stores every seven to eight years. In 2002 Kohl's is concentrating on its homeland Milwaukee market, introducing three new stores, repositioning two others, expanding five locations and modifying eight supplementary stores.
Expansion Data

In the beginning there were 76 stores in six Midwestern states at the time of its 1992 IPO, these were increased to 420 stores in 32 states. The CEO informed that the company would continue to grow by 18 percent to 20 percent every year.
62 new Kohl's stores were opened in 2001, and there is a planning to open 70 new stores in 2002. So far this year there has been an addition of 38 new stores, including successful entries into the Boston, Houston and Nashville markets, and yet there is a plan to open 32 stores, R.I., this fall," Montgomery explained.

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