Putting Customers First KEVIN MANSELL Chairman, Chief Executive - PowerPoint PPT Presentation

Putting Customers First KEVIN MANSELL Chairman, Chief Executive Officer & President

AGENDA Holiday Update Putting Priorities Update Customers Driving Traffic Operational Excellence First Financial Priorities Q&A

2017 Momentum in Sales & Traffic 6.9% Sales Traffic 0.1% (0.4%) 0 (2.7%) Q1 Q2 Q3 NOV/DEC

Key Performance Metrics FOOTWEAR HOME FOOTWEAR MEN’S FOOTWEAR HOME ACCESSORIES 26% FOOTWEAR HOME MEN’S CHILDREN’S + HOME MEN’S CHILDREN’S WOMEN’S National 17% 15% 13% _ MEN’S ACCESSORIES WOMEN’S CHILDREN’S CHILDREN’S ACCESSORIES Proprietary WOMEN’S WOMEN’S ACCESSORIES Q1 Q2 Q3 Nov/Dec Q1 Q2 Q3 Nov/Dec Q1 Q2 Q3 Nov/Dec Growth in digital demand Strength in both national Improvement throughout and proprietary brands all lines of business

Easy Experience Amazing Products DRIVING TRAFFIC Personalized Connections Incredible Savings Company Priorities OPERATIONAL EXCELLENCE Working Differently Investment Priorities

DRIVING TRAFFIC Physical stores are EASY EXPERIENCE core to our business National store footprint Stores as fulfillment centers Flexible off-mall locations

DRIVING TRAFFIC Leveraging technology to EASY EXPERIENCE enhance the store experience Improved Mobile & App Buy Online Enhanced Point Endless Aisle Experience Pick Up In Store of Commerce

DRIVING TRAFFIC Driving innovation to evolve EASY EXPERIENCE with the customer • Customer experience Your Store • Innovation Store operations • Store management empowerment

DRIVING TRAFFIC National brands driving AMAZING PRODUCTS engagement ACTIVE + WELLNESS NATIONAL BRAND EXPANSION

DRIVING TRAFFIC Speed & localization driving AMAZING PRODUCTS proprietary brands Enhancement of our Speed initiative largest brands

DRIVING TRAFFIC Driving results through PERSONALIZED CONNECTIONS data & analytics HI KATIE! Personalization Your Price Personalized Search Smart Cart in Marketing Online + In Store

Kohl’s is a leader in loyalty DRIVING TRAFFIC INCREDIBLE SAVINGS 25M Customers 30M Customers $2B redeemed

DRIVING TRAFFIC Evolving our leadership INCREDIBLE SAVINGS in loyalty Simplify Broaden Deepen

OPERATIONAL EXCELLENCE Working smarter to invest EXPENSE MANAGEMENT in our future Working differently Investment priorities

OPERATIONAL EXCELLENCE Making stores more STORES productive Buy Online Pick Up In Store Improving technology for Ship from Store associate productivity Ship to Store Standard to small Rightsizing stores Small stores

Building on strong capital management Working Capital Improvements Balance Sheet • • Inventory management Consistent operating cash flow • • Store refresh and remodel initiative Investment grade commitment Smaller stores Shareholder return • • • Dividend growth Share buyback •

Putting Progress in Two priorities: customers first performance Driving traffic & operational excellence