EX-99.1 2 d32402dex991.htm EX-99.1

Exhibit 99.1 Investor Presentation October 2020Exhibit 99.1 Investor Presentation October 2020

Cautionary Statement Regarding Forward-Looking Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as believes, anticipates, plans, may, intends, will, should, expects, and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, comments about Kohl's future financial plans, capital generation, management and deployment strategies, adequacy of capital resources and the competitive environment. Such statements are subject to certain risks and uncertainties, which could cause Kohl's actual results to differ materially from those anticipated by the forward looking statements. These risks and uncertainties include, but are not limited to, those described in Item 1A in Kohl's Annual Report on Form 10-K, and in Item 1A of Part II in the Company's Quarterly Report on Form 10-Q for the quarter ended May 2, 2020, which are expressly incorporated herein by reference, and other factors as may periodically be described in Kohl's filings with the SEC. Any number of risks and uncertainties could cause actual results to differ materially from those Kohl’s expresses in its forward-looking statements, including the short and long-term impact of COVID-19 on the economy and the pace of recovery thereafter. Forward-looking statements speak as of the date they are made, and Kohl’s undertakes no obligation to update them.   Non-GAAP Financial Measures In addition, this presentation contains non-GAAP financial measures, including adjusted operating income, free cash flow, and leverage ratio. Reconciliations of all non-GAAP measures to the most directly comparable GAAP measures are included in the Appendix of this presentation. 2Cautionary Statement Regarding Forward-Looking Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as believes, anticipates, plans, may, intends, will, should, expects, and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, comments about Kohl's future financial plans, capital generation, management and deployment strategies, adequacy of capital resources and the competitive environment. Such statements are subject to certain risks and uncertainties, which could cause Kohl's actual results to differ materially from those anticipated by the forward looking statements. These risks and uncertainties include, but are not limited to, those described in Item 1A in Kohl's Annual Report on Form 10-K, and in Item 1A of Part II in the Company's Quarterly Report on Form 10-Q for the quarter ended May 2, 2020, which are expressly incorporated herein by reference, and other factors as may periodically be described in Kohl's filings with the SEC. Any number of risks and uncertainties could cause actual results to differ materially from those Kohl’s expresses in its forward-looking statements, including the short and long-term impact of COVID-19 on the economy and the pace of recovery thereafter. Forward-looking statements speak as of the date they are made, and Kohl’s undertakes no obligation to update them. Non-GAAP Financial Measures In addition, this presentation contains non-GAAP financial measures, including adjusted operating income, free cash flow, and leverage ratio. Reconciliations of all non-GAAP measures to the most directly comparable GAAP measures are included in the Appendix of this presentation. 2

10 Driving Top Line Growth Kohl’s: Our Vision and Strategy 4 Drive Top Line Growth 11 Expand Operating Margin 23 Table of Contents Disciplined Capital Management 27 Strong Organizational Core 31 Creating Long-term Shareholder Value 33 310 Driving Top Line Growth Kohl’s: Our Vision and Strategy 4 Drive Top Line Growth 11 Expand Operating Margin 23 Table of Contents Disciplined Capital Management 27 Strong Organizational Core 31 Creating Long-term Shareholder Value 33 3

Kohl’s: Our Vision and Strategy 4Kohl’s: Our Vision and Strategy 4

OUR VISION The most trusted retailer of choice for the active and casual lifestyle Destination for active, casual and beauty for the entire • family — from the most trusted brands, always delivering quality and discovery Leading with loyalty and value through best-in-class • rewards program Differentiated omni-channel experience — easy and inviting, • no matter how our customers want to shop 5OUR VISION The most trusted retailer of choice for the active and casual lifestyle Destination for active, casual and beauty for the entire • family — from the most trusted brands, always delivering quality and discovery Leading with loyalty and value through best-in-class • rewards program Differentiated omni-channel experience — easy and inviting, • no matter how our customers want to shop 5

Our Strategy The most trusted retailer of choice for the active and casual lifestyle Expand Disciplined Strong Operating Capital Organizational Margin Management Core Drive Top Line Growth Destination for Differentiated Agile, Active & Casual Leading with Omni-channel Operating Margin Maintain Strong Accountable & Lifestyle Loyalty & Value Experience Goal of 7% to 8% Balance Sheet Inclusive Culture Expand Active and Outdoor Best-in-class loyalty Healthy store base in End-to-end supply chain Sustain Investment Grade Innovative and adaptive • • • • • • evolving landscape transformation rating learning approach Reignite growth in Women’s Drive productivity • • through deeper Modernize the store SG&A efficiency through Solid cash flow Focused on diversity • • • • Build a sizable Beauty • engagement experience store labor, marketing, generation and inclusion business and technology Deliver personalized Continue digital growth Committed to returning ESG stewardship • • • • Drive category productivity • experiences Operational excellence capital to shareholders • and inventory turn Further enhance omni- • channel capabilities Capture market share from • retail industry disruption Creating Long-term Shareholder Value Expand operating margin Return to growth Solid cash flow generation Return capital to shareholders Maintain strong balance sheet 6Our Strategy The most trusted retailer of choice for the active and casual lifestyle Expand Disciplined Strong Operating Capital Organizational Margin Management Core Drive Top Line Growth Destination for Differentiated Agile, Active & Casual Leading with Omni-channel Operating Margin Maintain Strong Accountable & Lifestyle Loyalty & Value Experience Goal of 7% to 8% Balance Sheet Inclusive Culture Expand Active and Outdoor Best-in-class loyalty Healthy store base in End-to-end supply chain Sustain Investment Grade Innovative and adaptive • • • • • • evolving landscape transformation rating learning approach Reignite growth in Women’s Drive productivity • • through deeper Modernize the store SG&A efficiency through Solid cash flow Focused on diversity • • • • Build a sizable Beauty • engagement experience store labor, marketing, generation and inclusion business and technology Deliver personalized Continue digital growth Committed to returning ESG stewardship • • • • Drive category productivity • experiences Operational excellence capital to shareholders • and inventory turn Further enhance omni- • channel capabilities Capture market share from • retail industry disruption Creating Long-term Shareholder Value Expand operating margin Return to growth Solid cash flow generation Return capital to shareholders Maintain strong balance sheet 6

We are uniquely positioned to be the retailer of choice for the active and casual lifestyle For the entire family Accessible and Omni-channel ease Positioned for growth aspirational brand We serve the entire family We have a best-in-class omni- We’re focusing on growth portfolio across a breadth of categories: channel platform reaching 65 categories, and our flexible Women’s, Men’s, Kids, Home, million customers nationwide store and digital assets allow We offer an unmatched brand and Beauty us to continue to evolve with portfolio that is accessible and the customer aspirational to families every day 7We are uniquely positioned to be the retailer of choice for the active and casual lifestyle For the entire family Accessible and Omni-channel ease Positioned for growth aspirational brand We serve the entire family We have a best-in-class omni- We’re focusing on growth portfolio across a breadth of categories: channel platform reaching 65 categories, and our flexible Women’s, Men’s, Kids, Home, million customers nationwide store and digital assets allow We offer an unmatched brand and Beauty us to continue to evolve with portfolio that is accessible and the customer aspirational to families every day 7

Kohl’s has a powerful foundation to accelerate growth Active Customers 65M Loyalty Members 30M Kohl’s Charge Card holders 29M Kohl’s App Users 16M Of Americans living within 15 miles of a Kohl’s store 80% Nationwide base of convenient store locations 1,163 Store visits 600M Digital sales penetration 24% Website visits per year 1.5B 12M 1.5M 10M 1M Socially Facebook Followers Instagram Followers Monthly Pinterest Views Twitter Followers Engaged Figures based on 2019 results 8Kohl’s has a powerful foundation to accelerate growth Active Customers 65M Loyalty Members 30M Kohl’s Charge Card holders 29M Kohl’s App Users 16M Of Americans living within 15 miles of a Kohl’s store 80% Nationwide base of convenient store locations 1,163 Store visits 600M Digital sales penetration 24% Website visits per year 1.5B 12M 1.5M 10M 1M Socially Facebook Followers Instagram Followers Monthly Pinterest Views Twitter Followers Engaged Figures based on 2019 results 8

We are building on areas with proven momentum Active Beauty Digital Innovation • We’re already a major player in • Our recent focus is gaining • We’ve continued to innovate • Leveraging our store footprint Active as a top retailer of Nike, traction and our customers are and enhance the customer (e.g. Amazon Returns) Under Armour, and Adidas responding experience • Using our omni-channel • Sales nearly doubled since • Sales increased nearly 40% platform to bring discovery to Digital sales grew more than • 2013 to 20% of our business over the past 5 years our customers 100% over the past 5 years to (e.g. Curated by Kohl’s) $4.5 billion • Constantly testing and implementing new ideas to better serve the customer (e.g. Store Drive Up) Figures based on 2019 results 9We are building on areas with proven momentum Active Beauty Digital Innovation • We’re already a major player in • Our recent focus is gaining • We’ve continued to innovate • Leveraging our store footprint Active as a top retailer of Nike, traction and our customers are and enhance the customer (e.g. Amazon Returns) Under Armour, and Adidas responding experience • Using our omni-channel • Sales nearly doubled since • Sales increased nearly 40% platform to bring discovery to Digital sales grew more than • 2013 to 20% of our business over the past 5 years our customers 100% over the past 5 years to (e.g. Curated by Kohl’s) $4.5 billion • Constantly testing and implementing new ideas to better serve the customer (e.g. Store Drive Up) Figures based on 2019 results 9

The COVID-19 crisis has further accelerated the path we’re on Active and Casual Digital and omni- Importance of value Shopping safely channel acceleration • We have grown Active at a 10% • Customers consistently rate • Made significant enhancements CAGR over the past 3 years Kohl’s as a leader in delivering to the store environment and • Our omni-channel customers compelling value operations as we reopened spend 6x more than our digital- • The Activewear market is only customers and 4x more expected to grow at a 3.3% • We have been recognized as the • Strong customer satisfaction than our store-only customers CAGR through 2023* #1 leader in loyalty in our retail with our new safety and sector for the past 4 years* cleanliness procedures • We added 4 million new digital • The trend towards casualization customers during the first half has accelerated as a result of the • Launched Kohl’s Rewards • We received an “A” grade from of 2020 COVID-19 crisis, and Kohl’s is a nationwide in September 2020 ShopSafely, an organization that known casual destination scores retailers on the safety of • Launched Store Drive Up in their shopping experience April 2020 during the COVID-19 pandemic • Stores fulfilled 50% of digital sales in Q2 2020 * Source: Euromonitor; Bond Brand Loyalty Report 10The COVID-19 crisis has further accelerated the path we’re on Active and Casual Digital and omni- Importance of value Shopping safely channel acceleration • We have grown Active at a 10% • Customers consistently rate • Made significant enhancements CAGR over the past 3 years Kohl’s as a leader in delivering to the store environment and • Our omni-channel customers compelling value operations as we reopened spend 6x more than our digital- • The Activewear market is only customers and 4x more expected to grow at a 3.3% • We have been recognized as the • Strong customer satisfaction than our store-only customers CAGR through 2023* #1 leader in loyalty in our retail with our new safety and sector for the past 4 years* cleanliness procedures • We added 4 million new digital • The trend towards casualization customers during the first half has accelerated as a result of the • Launched Kohl’s Rewards • We received an “A” grade from of 2020 COVID-19 crisis, and Kohl’s is a nationwide in September 2020 ShopSafely, an organization that known casual destination scores retailers on the safety of • Launched Store Drive Up in their shopping experience April 2020 during the COVID-19 pandemic • Stores fulfilled 50% of digital sales in Q2 2020 * Source: Euromonitor; Bond Brand Loyalty Report 10

Drive Top Line Growth 11Drive Top Line Growth 11

Drive Active to be at least 30% of our business Active sales have increased at a 10% CAGR over the past three years, growing to 20% of our total sales in 2019 Fuel growth with Amplify Grow Outdoor Expand inclusive Extended key national brands opportunity in sizes assortment online • Expand Columbia across athleisure categories • Innovation and discovery • Maximize underserved • More size and color across brands and market and high-growth options • Scale Lands’ End • Introduce FLX, a new categories for the entire opportunity athleisure private brand in • Additional styles - Starting with 150 stores in family Spring 2021 Fall 2020 with room to • Inclusive sizing sales have • Partnerships grow • Assortment expansion outpaced our category • Grow existing brands   growth and is expected • Maximize team sports / - Currently offering full (e.g. Champion, Vans) • Unique collaborations to continue catalog online Fanatics opportunity • Curate and introduce • Increase dedicated space • Increase space and • Continuous testing of emerging brands choices in Plus and   • Differentiated new ideas Big & Tall experiences 12Drive Active to be at least 30% of our business Active sales have increased at a 10% CAGR over the past three years, growing to 20% of our total sales in 2019 Fuel growth with Amplify Grow Outdoor Expand inclusive Extended key national brands opportunity in sizes assortment online • Expand Columbia across athleisure categories • Innovation and discovery • Maximize underserved • More size and color across brands and market and high-growth options • Scale Lands’ End • Introduce FLX, a new categories for the entire opportunity athleisure private brand in • Additional styles - Starting with 150 stores in family Spring 2021 Fall 2020 with room to • Inclusive sizing sales have • Partnerships grow • Assortment expansion outpaced our category • Grow existing brands growth and is expected • Maximize team sports / - Currently offering full (e.g. Champion, Vans) • Unique collaborations to continue catalog online Fanatics opportunity • Curate and introduce • Increase dedicated space • Increase space and • Continuous testing of emerging brands choices in Plus and • Differentiated new ideas Big & Tall experiences 12

We are taking a new and bolder approach to reignite growth in our Women’s business Women’s sales declined at a 1.8% CAGR over the past three years versus rest of company increase of +1.4% CAGR Restructured Brand portfolio Partnering with Drive clarity and Enhance shopability organization reinvention influencers to drive productivity and discovery engagement • Integration of • Exiting eight • Reduce inventory and • By the end of 2020, merchandising, downtrending private improve inventory enhance the Women’s • Zoe Saldana x Adidas planning, and product brands turns experience through: • Cara Santana x Apt. 9 development under a - Improving outfitting • Introducing new • Reduce choice counts single source of • Sonoma x Now + Gen solutions with relevant brands by 40% and increase accountability increased mannequins appealing to both core depth by 50% in Q4 • More in development - New merchandising • New leadership team customers and new, 2020 • Drive awareness with extensive industry younger customers - Greater storytelling through social media experience • Will continue to iterate and evolve portfolio to ensure relevancy 13We are taking a new and bolder approach to reignite growth in our Women’s business Women’s sales declined at a 1.8% CAGR over the past three years versus rest of company increase of +1.4% CAGR Restructured Brand portfolio Partnering with Drive clarity and Enhance shopability organization reinvention influencers to drive productivity and discovery engagement • Integration of • Exiting eight • Reduce inventory and • By the end of 2020, merchandising, downtrending private improve inventory enhance the Women’s • Zoe Saldana x Adidas planning, and product brands turns experience through: • Cara Santana x Apt. 9 development under a - Improving outfitting • Introducing new • Reduce choice counts single source of • Sonoma x Now + Gen solutions with relevant brands by 40% and increase accountability increased mannequins appealing to both core depth by 50% in Q4 • More in development - New merchandising • New leadership team customers and new, 2020 • Drive awareness with extensive industry younger customers - Greater storytelling through social media experience • Will continue to iterate and evolve portfolio to ensure relevancy 13

Build a sizable Beauty business, with the goal of tripling sales and driving incremental traffic We have momentum and Elevate and expand Invest in inspiring and our customers are ready assortment elevated store experience • Demonstrated ability to grow the • Leadership position in fragrance • 2,000+ sq. ft. in prime front of store business with nearly 40% growth   today location over the past 5 years • Expand color and skincare • Premium flexible fixtures • Successful results from 12 elevated • Introduce additional relevant • Trained beauty advisor engagement beauty experience stores national brands • Enhanced lighting and leveraging • Leverage success with Lauren technology Conrad into beauty • Curate unique digital offerings Figures based on 2019 results 14Build a sizable Beauty business, with the goal of tripling sales and driving incremental traffic We have momentum and Elevate and expand Invest in inspiring and our customers are ready assortment elevated store experience • Demonstrated ability to grow the • Leadership position in fragrance • 2,000+ sq. ft. in prime front of store business with nearly 40% growth today location over the past 5 years • Expand color and skincare • Premium flexible fixtures • Successful results from 12 elevated • Introduce additional relevant • Trained beauty advisor engagement beauty experience stores national brands • Enhanced lighting and leveraging • Leverage success with Lauren technology Conrad into beauty • Curate unique digital offerings Figures based on 2019 results 14

Drive category productivity and inventory turn through strategic category and brand introductions and exits Category transformation Brand portfolio transformation Inventory management • We are leaning into growth categories such • We are exiting downtrending brands with • Drive inventory productivity by: as Active, Casual, and Beauty eight previously announced and more to - Increasing inventory turn by focusing on faster come growing, higher turn products and categories • We are streamlining less productive - Improving clarity by increasing depth and categories such as men’s dress, handbags, • We are amplifying our focus on core existing reducing choice count and fine jewelry brands - Introducing fresher product by decreasing • We continue to introduce new relevant cycle time brands in 2020 and beyond (Lands’ End, - Leveraging technology to drive dynamic TOMS, and Cole Haan) inventory allocation leading to higher regular sell through and reduced clearance levels 15Drive category productivity and inventory turn through strategic category and brand introductions and exits Category transformation Brand portfolio transformation Inventory management • We are leaning into growth categories such • We are exiting downtrending brands with • Drive inventory productivity by: as Active, Casual, and Beauty eight previously announced and more to - Increasing inventory turn by focusing on faster come growing, higher turn products and categories • We are streamlining less productive - Improving clarity by increasing depth and categories such as men’s dress, handbags, • We are amplifying our focus on core existing reducing choice count and fine jewelry brands - Introducing fresher product by decreasing • We continue to introduce new relevant cycle time brands in 2020 and beyond (Lands’ End, - Leveraging technology to drive dynamic TOMS, and Cole Haan) inventory allocation leading to higher regular sell through and reduced clearance levels 15

Capture market share from retail industry disruption We have benefited from competitor store closures in the past and seek to capitalize on future opportunities U.S. retail bankruptcies, As many as 25,000 U.S. Retail was changing — store closures hit record in stores may close in 2020, but COVID-19 is making it first half of 2020. mostly in malls. unrecognizable. Share Capture Strategy • Highlight the strength and longevity of our brand • Drive awareness and consideration through local marketing (radio, television, and out of home) • Geo-target competitors’ customers in digital video, social, and display • Personalize emails to gain share of wallet from Kohl’s customers who also shop competitors 16Capture market share from retail industry disruption We have benefited from competitor store closures in the past and seek to capitalize on future opportunities U.S. retail bankruptcies, As many as 25,000 U.S. Retail was changing — store closures hit record in stores may close in 2020, but COVID-19 is making it first half of 2020. mostly in malls. unrecognizable. Share Capture Strategy • Highlight the strength and longevity of our brand • Drive awareness and consideration through local marketing (radio, television, and out of home) • Geo-target competitors’ customers in digital video, social, and display • Personalize emails to gain share of wallet from Kohl’s customers who also shop competitors 16

Our industry-leading loyalty program is a key value differentiator Great Everyday Value Kohl’s Cash Kohl’s Rewards Kohl’s Charge Card • Deliver compelling pricing and • Iconic and differentiated loyalty • Provides customers the • Highest sales penetration in offers to 65 million customers device that provides a fly-wheel opportunity to earn 5% Kohl’s retail (e.g. 56% in 2019) effect on customer return visits Cash everyday • Have built a responsive and agile • Provides more opportunities for model to optimize pricing and • Earn and redeem on all • 30 million members that spend customers to save promotions merchandise (no exclusions) 2x more than non-loyalty • Highest tier Kohl’s Charge Card customers • Focused on driving offer • No other retailer has successfully customers (“Most Valuable efficiency replicated or scaled this model • Consistently rated as a leading Customer”) spend 10x more loyalty program by customers than non-loyalty customers • Customers consistently rate Kohl’s as a leader in delivering • Recently launched to simplify • Supports a proprietary and compelling value and add new features and expansive customer knowledge personalization and analytics 17Our industry-leading loyalty program is a key value differentiator Great Everyday Value Kohl’s Cash Kohl’s Rewards Kohl’s Charge Card • Deliver compelling pricing and • Iconic and differentiated loyalty • Provides customers the • Highest sales penetration in offers to 65 million customers device that provides a fly-wheel opportunity to earn 5% Kohl’s retail (e.g. 56% in 2019) effect on customer return visits Cash everyday • Have built a responsive and agile • Provides more opportunities for model to optimize pricing and • Earn and redeem on all • 30 million members that spend customers to save promotions merchandise (no exclusions) 2x more than non-loyalty • Highest tier Kohl’s Charge Card customers • Focused on driving offer • No other retailer has successfully customers (“Most Valuable efficiency replicated or scaled this model • Consistently rated as a leading Customer”) spend 10x more loyalty program by customers than non-loyalty customers • Customers consistently rate Kohl’s as a leader in delivering • Recently launched to simplify • Supports a proprietary and compelling value and add new features and expansive customer knowledge personalization and analytics 17

Delivering personalized experiences for customers ensures they progress through their lifecycle with Kohl’s Best product Best content Best offer Best delivery • Personalized emails • Outfitting tailored to customer • Targeting customers with a • Reminding customers about propensities drives spend challenge to hit their products abandoned in cart in • Styling recommendations engagement across email, site, next Reward value email as well as on site, based on customer and social channels particularly when prices drop, preferences across multiple • Dynamically serving customer drives conversion touchpoints offers based on customer propensities • Corresponding homepage banners • Reminding customers about Kohl’s Cash balance INCREASE IN CUSTOMER ENGAGEMENT HIGHER REVENUE PER PURCHASER + Personalized emails have 2x higher 10% of digital sales are based on We connect with our customers Our 16 million app users are open rates and 4x higher click-thru personalized recommendations more than 10 times per week 2x more active than web users rates than non-personalized emails 18Delivering personalized experiences for customers ensures they progress through their lifecycle with Kohl’s Best product Best content Best offer Best delivery • Personalized emails • Outfitting tailored to customer • Targeting customers with a • Reminding customers about propensities drives spend challenge to hit their products abandoned in cart in • Styling recommendations engagement across email, site, next Reward value email as well as on site, based on customer and social channels particularly when prices drop, preferences across multiple • Dynamically serving customer drives conversion touchpoints offers based on customer propensities • Corresponding homepage banners • Reminding customers about Kohl’s Cash balance INCREASE IN CUSTOMER ENGAGEMENT HIGHER REVENUE PER PURCHASER + Personalized emails have 2x higher 10% of digital sales are based on We connect with our customers Our 16 million app users are open rates and 4x higher click-thru personalized recommendations more than 10 times per week 2x more active than web users rates than non-personalized emails 18

Kohl’s has a strong and productive store base which can evolve with customer expectations and demand Our stores are very healthy and profitable • Constantly evaluating our retail footprint to serve our customers • Taking a disciplined approach of evaluating stores with the flexibility to adjust as needed • (e.g. 50 to 70 leases up for renewal annually) Leveraging our stores very differently than in the past • of stores generated $1M+ 90% in 4-wall cash flow in 2019 1,163 80% 95% stores in of Americans live of Kohl’s stores within 15 miles of a are off-mall 49 states Kohl’s store + 35% 10% 99% of digital sales higher digital sales of stores were fulfilled by stores in markets with 4-wall cash flow stores positive in 2019 19Kohl’s has a strong and productive store base which can evolve with customer expectations and demand Our stores are very healthy and profitable • Constantly evaluating our retail footprint to serve our customers • Taking a disciplined approach of evaluating stores with the flexibility to adjust as needed • (e.g. 50 to 70 leases up for renewal annually) Leveraging our stores very differently than in the past • of stores generated $1M+ 90% in 4-wall cash flow in 2019 1,163 80% 95% stores in of Americans live of Kohl’s stores within 15 miles of a are off-mall 49 states Kohl’s store + 35% 10% 99% of digital sales higher digital sales of stores were fulfilled by stores in markets with 4-wall cash flow stores positive in 2019 19

We are modernizing the total store experience to better serve today’s family Simplified Shopping Inspired Solutions Product Storytelling Omni Experiences Experience • Evolve existing omni • Construct product stories that • Continue to refresh the look and • Leverage cross merchandising experiences: leverage breadth of assortment feel of the store environment and overall product statements to encourage exploration & build to offer solutions across both - BOPUS/BOSS • Increase space to shop by engagement apparel and home - Store Drive Up opening up the aisles • Leverage key positions - Amazon Returns throughout the store to • Create a more inviting shopping • Continue to test new introduce new brands and build experience by reducing choices, experiences to better serve baskets: increasing inventory depth, and our customers - Curated by Kohl’s editing fixtures - Impulse program 20We are modernizing the total store experience to better serve today’s family Simplified Shopping Inspired Solutions Product Storytelling Omni Experiences Experience • Evolve existing omni • Construct product stories that • Continue to refresh the look and • Leverage cross merchandising experiences: leverage breadth of assortment feel of the store environment and overall product statements to encourage exploration & build to offer solutions across both - BOPUS/BOSS • Increase space to shop by engagement apparel and home - Store Drive Up opening up the aisles • Leverage key positions - Amazon Returns throughout the store to • Create a more inviting shopping • Continue to test new introduce new brands and build experience by reducing choices, experiences to better serve baskets: increasing inventory depth, and our customers - Curated by Kohl’s editing fixtures - Impulse program 20

Enhanced digital capabilities serve customers’ preferences, complement omni-channel strategy and drive growth Digital sales have increased at a 17% CAGR since 2014, growing to 24% of sales in 2019 Driving value to our Constantly evolving and Expanding digital exclusive customers enhancing the experience portfolio • Improved price transparency through • New website with elevated inspiration • Active and Outdoor (e.g. Fanatics, Your Price, which provides personalized and discovery Lands’ End) prices by item based on the customers’ • Greater functionality with attribution • Beauty specific offers and filtering, product recommendations, • Testing ground for products • Increasing value through Smart Cart, and frictionless checkout (e.g. Curated by Kohl’s) which provides incentive for customer • Ease of experience with the Kohl’s App pickup • Fill gaps in our assortment • Evolving capability to do real-time and • Direct Ship expansion targeted offers 21Enhanced digital capabilities serve customers’ preferences, complement omni-channel strategy and drive growth Digital sales have increased at a 17% CAGR since 2014, growing to 24% of sales in 2019 Driving value to our Constantly evolving and Expanding digital exclusive customers enhancing the experience portfolio • Improved price transparency through • New website with elevated inspiration • Active and Outdoor (e.g. Fanatics, Your Price, which provides personalized and discovery Lands’ End) prices by item based on the customers’ • Greater functionality with attribution • Beauty specific offers and filtering, product recommendations, • Testing ground for products • Increasing value through Smart Cart, and frictionless checkout (e.g. Curated by Kohl’s) which provides incentive for customer • Ease of experience with the Kohl’s App pickup • Fill gaps in our assortment • Evolving capability to do real-time and • Direct Ship expansion targeted offers 21

Compelling and differentiated omni-channel experience drives increased customer productivity 4X 6X Omni-channel Omni-channel customer customer Omni-channel Stores Digital productivity vs. productivity vs. store-only digital-only 1.5B website visits 1,163 stores per year conveniently Drive traffic to stores located off-mall (store inventory visibility, geo-location marketing deals) 16M active app users 600M store visits Grew digital sales Leverage omni capabilities in 2019 more than 100% over (In-store pickup, Store Drive Up) the past 5 years Stores as network (Ship From Store) 22Compelling and differentiated omni-channel experience drives increased customer productivity 4X 6X Omni-channel Omni-channel customer customer Omni-channel Stores Digital productivity vs. productivity vs. store-only digital-only 1.5B website visits 1,163 stores per year conveniently Drive traffic to stores located off-mall (store inventory visibility, geo-location marketing deals) 16M active app users 600M store visits Grew digital sales Leverage omni capabilities in 2019 more than 100% over (In-store pickup, Store Drive Up) the past 5 years Stores as network (Ship From Store) 22

Expand Operating Margin 23Expand Operating Margin 23

We are focused on returning to growth Total Active & Outdoor $20.2 Revenue $20.1 $20.0 ($ in billions) Women’s Beauty Retail disruption Loyalty Digital Comparable +1.5% +1.7% (1.3%) Sales Growth Stores 2017* 2018 2019 Future * Includes $170M related to 53rd week 24We are focused on returning to growth Total Active & Outdoor $20.2 Revenue $20.1 $20.0 ($ in billions) Women’s Beauty Retail disruption Loyalty Digital Comparable +1.5% +1.7% (1.3%) Sales Growth Stores 2017* 2018 2019 Future * Includes $170M related to 53rd week 24

We are confident in our ability to expand operating margin to 7% to 8% We expect to achieve this as the environment normalizes Operating Margin 7% to 8% Supply chain transformation Sourcing 7.2% 7.1% Inventory management Operational excellence 6.1% Store automation Marketing eﬃciency Cost of shipping Product mix Wages 2017 2018* 2019* Future * 2018 and 2019 are Adjusted Operating Margin. Adjusted Operating Margin is a non-GAAP financial measure. For reference, the reconciliation can be found in the Appendix. 25We are confident in our ability to expand operating margin to 7% to 8% We expect to achieve this as the environment normalizes Operating Margin 7% to 8% Supply chain transformation Sourcing 7.2% 7.1% Inventory management Operational excellence 6.1% Store automation Marketing eﬃciency Cost of shipping Product mix Wages 2017 2018* 2019* Future * 2018 and 2019 are Adjusted Operating Margin. Adjusted Operating Margin is a non-GAAP financial measure. For reference, the reconciliation can be found in the Appendix. 25

Continuously driving greater cost efficiency through Operational Excellence discipline Recent cost Gross margin efficiency SG&A efficiency reduction efforts Sourcing optimization Store labor Leverage supplier relationships to drive Streamline and automate task-based work 2017-2019 more efficiency in product costs to reduce labor costs and invest back into Exceeded cost savings goal of $250 million an improved customer experience (e.g. self- through greater efficiency in gross margin service checkout) (e.g. merchandise margin, omnichannel End-to-end supply chain capabilities) and SG&A (e.g. store payroll transformation Marketing and store operations, credit, corporate) Enable optimal inventory deployment to Drive spend efficiencies through more increase service levels, reduce clearance and digital and less print advertising 2020 shipping costs and improve turn Organizational restructuring actions in 2020 Technology to date are expected to generate expense More agile approach with focus on customer savings of more than $100 million on an outcomes annualized basis 26Continuously driving greater cost efficiency through Operational Excellence discipline Recent cost Gross margin efficiency SG&A efficiency reduction efforts Sourcing optimization Store labor Leverage supplier relationships to drive Streamline and automate task-based work 2017-2019 more efficiency in product costs to reduce labor costs and invest back into Exceeded cost savings goal of $250 million an improved customer experience (e.g. self- through greater efficiency in gross margin service checkout) (e.g. merchandise margin, omnichannel End-to-end supply chain capabilities) and SG&A (e.g. store payroll transformation Marketing and store operations, credit, corporate) Enable optimal inventory deployment to Drive spend efficiencies through more increase service levels, reduce clearance and digital and less print advertising 2020 shipping costs and improve turn Organizational restructuring actions in 2020 Technology to date are expected to generate expense More agile approach with focus on customer savings of more than $100 million on an outcomes annualized basis 26

Disciplined Capital Management 27Disciplined Capital Management 27

Balanced Capital Allocation Strategy Committed to returning capital to shareholders Maintain strong balance sheet Long-term objective of maintaining Investment Grade rating 1 2 3 4 Opportunistic, Invest in   Share   Dividend complementary  the business repurchases M&A 28Balanced Capital Allocation Strategy Committed to returning capital to shareholders Maintain strong balance sheet Long-term objective of maintaining Investment Grade rating 1 2 3 4 Opportunistic, Invest in Share Dividend complementary the business repurchases M&A 28

We have a history of investing in our business and returning significant capital to shareholders Significant Capital Returned Capex ($ in millions) Solid Free Cash Flow ($ in millions) to Shareholders ($ in millions) Dividend Share Repurchase $893 $796 $674 $470 $396 $855 $1,403 $306 $672 $578 $881 $700 $423 $400 $368 2017 2018 2019 2017 2018 2019 2017 2018 2019 • Remain committed to investing in the • Focused on driving free cash flow • Committed to long-term capital return business program once environment stabilizes • $3.0 billion cumulative free cash flow • More than $2.0 billion cumulative Capex generated from 2017 through 2019 • $2.4 billion cumulative capital returned during 2017-2019, of which ~70% to shareholders during 2017-2019 through supported our omni-channel strategy dividend and share repurchases 29We have a history of investing in our business and returning significant capital to shareholders Significant Capital Returned Capex ($ in millions) Solid Free Cash Flow ($ in millions) to Shareholders ($ in millions) Dividend Share Repurchase $893 $796 $674 $470 $396 $855 $1,403 $306 $672 $578 $881 $700 $423 $400 $368 2017 2018 2019 2017 2018 2019 2017 2018 2019 • Remain committed to investing in the • Focused on driving free cash flow • Committed to long-term capital return business program once environment stabilizes • $3.0 billion cumulative free cash flow • More than $2.0 billion cumulative Capex generated from 2017 through 2019 • $2.4 billion cumulative capital returned during 2017-2019, of which ~70% to shareholders during 2017-2019 through supported our omni-channel strategy dividend and share repurchases 29

We are committed to prudent balance sheet management with a long-term objective of sustaining Investment Grade rating Long History of Disciplined Financial Management More than two decades of maintaining Investment Grade rating • Modest pre-COVID-19 debt structure (2.5x leverage at year-end 2019) in relation to cash flow generation • Reduced debt by over $940 million in 2018-2019 • Aggressive Actions in 2020 to Preserve Financial Flexibility Revolver New Debt Sale-leaseback • Replaced, secured, and upsized to $1.5 billion • Issued $600 million notes due 2025 • Completed sale of two facilities for $193 million • Fully repaid in October 2020 • Full line available for utilization Future Actions Nearest term debt maturity is 2023 • As environment stabilizes, we will focus on reducing leverage through liability management • Leverage Ratio is a non-GAAP financial measure. For reference, the reconciliation can be found in the Appendix. 30We are committed to prudent balance sheet management with a long-term objective of sustaining Investment Grade rating Long History of Disciplined Financial Management More than two decades of maintaining Investment Grade rating • Modest pre-COVID-19 debt structure (2.5x leverage at year-end 2019) in relation to cash flow generation • Reduced debt by over $940 million in 2018-2019 • Aggressive Actions in 2020 to Preserve Financial Flexibility Revolver New Debt Sale-leaseback • Replaced, secured, and upsized to $1.5 billion • Issued $600 million notes due 2025 • Completed sale of two facilities for $193 million • Fully repaid in October 2020 • Full line available for utilization Future Actions Nearest term debt maturity is 2023 • As environment stabilizes, we will focus on reducing leverage through liability management • Leverage Ratio is a non-GAAP financial measure. For reference, the reconciliation can be found in the Appendix. 30

Strong Organizational Core 31Strong Organizational Core 31

We are evolving how we work to accelerate our path forward Innovative and Adaptive Focus on ESG Learning Approach Diversity & Inclusion Stewardship Culture of experimentation and testing Committed to fostering a diverse & inclusive Our ESG journey began more than a decade • • • environment for our associates and ago and our efforts are frequently recognized Dedicated resources against longer-term • customers innovation We are committed to the environment with • Established Diversity & Inclusion framework established 2025 goals for climate change, • Aggressively adopt machine-based decision • and goals to accelerate progress: People, waste and recycling, and sustainable sourcing making Customer, and Community 32We are evolving how we work to accelerate our path forward Innovative and Adaptive Focus on ESG Learning Approach Diversity & Inclusion Stewardship Culture of experimentation and testing Committed to fostering a diverse & inclusive Our ESG journey began more than a decade • • • environment for our associates and ago and our efforts are frequently recognized Dedicated resources against longer-term • customers innovation We are committed to the environment with • Established Diversity & Inclusion framework established 2025 goals for climate change, • Aggressively adopt machine-based decision • and goals to accelerate progress: People, waste and recycling, and sustainable sourcing making Customer, and Community 32

Creating Long-term Shareholder Value 33Creating Long-term Shareholder Value 33

Creating Long-term Shareholder Value Expand operating margin Return to growth Solid cash flow generation Return capital to shareholders Maintain strong balance sheet Our Strategy The most trusted retailer of choice for the active and casual lifestyle Expand Disciplined Strong Operating Capital Organizational Margin Management Core Drive Top Line Growth Destination for Differentiated Agile, Active & Casual Leading with Omni-channel Operating Margin Maintain Strong Accountable & Lifestyle Loyalty & Value Experience Goal of 7% to 8% Balance Sheet Inclusive Culture Expand Active and Outdoor Best-in-class loyalty Healthy store base in End-to-end supply chain Sustain Investment Grade Innovative and adaptive • • • • • • evolving landscape transformation rating learning approach Reignite growth in Women’s Drive productivity • • through deeper Modernize the store SG&A efficiency through Solid cash flow Focused on diversity • • • • Build a sizable Beauty • engagement experience store labor, marketing, generation and inclusion business and technology Deliver personalized Continue digital growth Committed to returning ESG stewardship • • • • Drive category productivity • experiences Operational excellence capital to shareholders • and inventory turn Further enhance omni- • channel capabilities Capture market share from • retail industry disruption 34Creating Long-term Shareholder Value Expand operating margin Return to growth Solid cash flow generation Return capital to shareholders Maintain strong balance sheet Our Strategy The most trusted retailer of choice for the active and casual lifestyle Expand Disciplined Strong Operating Capital Organizational Margin Management Core Drive Top Line Growth Destination for Differentiated Agile, Active & Casual Leading with Omni-channel Operating Margin Maintain Strong Accountable & Lifestyle Loyalty & Value Experience Goal of 7% to 8% Balance Sheet Inclusive Culture Expand Active and Outdoor Best-in-class loyalty Healthy store base in End-to-end supply chain Sustain Investment Grade Innovative and adaptive • • • • • • evolving landscape transformation rating learning approach Reignite growth in Women’s Drive productivity • • through deeper Modernize the store SG&A efficiency through Solid cash flow Focused on diversity • • • • Build a sizable Beauty • engagement experience store labor, marketing, generation and inclusion business and technology Deliver personalized Continue digital growth Committed to returning ESG stewardship • • • • Drive category productivity • experiences Operational excellence capital to shareholders • and inventory turn Further enhance omni- • channel capabilities Capture market share from • retail industry disruption 34

Appendix 35Appendix 35

Reconciliations Adjusted Operating Income Free Cash Flow Leverage Ratio ($ in millions) 2017 2018 2019 ($ in millions) 2017 2018 2019 ($ in millions) 2017 2018 2019 Finance lease and financing Operating Income 1,416 1,361 1,099 1,717 1,638 1,491 Net cash provided by operating obligations 1,691 2,107 1,657 Impairments, store closing activities 0 104 113 and other costs Long-term debt 2,797 1,861 1,856 Acquisition of property and (692) (578) (855) Adjusted Operating Income $1,416 $1,465 $1,212 equipment Total debt 4,514 3,499 3,347 Total Revenue $20,084 $20,229 $19,974 Finance lease and financing (138) (126) (113) obligation payments Adjusted Operating Income 7.1% 7.2% 6.1% Operating leases — — 2,777 as a % of Total Revenue Proceeds from financing — — 11 obligations Rent x 8 2,344 2,408 — Free cash flow $881 $1,403 $700 Adjusted debt 6,858 5,907 6,124 Operating income 1,416 1,361 1,099 Depreciation and amortization 991 964 917 Rent expense 293 301 314 EBITDAR 2,700 2,626 2,330 Impairments, store closing and — 104 113 other costs Adjusted EBITDAR 2,700 2,730 2,443 Adjusted debt to adjusted 2.5 2.2 2.5 EBITDAR 36Reconciliations Adjusted Operating Income Free Cash Flow Leverage Ratio ($ in millions) 2017 2018 2019 ($ in millions) 2017 2018 2019 ($ in millions) 2017 2018 2019 Finance lease and financing Operating Income 1,416 1,361 1,099 1,717 1,638 1,491 Net cash provided by operating obligations 1,691 2,107 1,657 Impairments, store closing activities 0 104 113 and other costs Long-term debt 2,797 1,861 1,856 Acquisition of property and (692) (578) (855) Adjusted Operating Income $1,416 $1,465 $1,212 equipment Total debt 4,514 3,499 3,347 Total Revenue $20,084 $20,229 $19,974 Finance lease and financing (138) (126) (113) obligation payments Adjusted Operating Income 7.1% 7.2% 6.1% Operating leases — — 2,777 as a % of Total Revenue Proceeds from financing — — 11 obligations Rent x 8 2,344 2,408 — Free cash flow $881 $1,403 $700 Adjusted debt 6,858 5,907 6,124 Operating income 1,416 1,361 1,099 Depreciation and amortization 991 964 917 Rent expense 293 301 314 EBITDAR 2,700 2,626 2,330 Impairments, store closing and — 104 113 other costs Adjusted EBITDAR 2,700 2,730 2,443 Adjusted debt to adjusted 2.5 2.2 2.5 EBITDAR 36