Kohl’s Mails Definitive Proxy and Sends Letter to Shareholders

Rhea-AI Summary

Kohl’s Corporation (NYSE:KSS) announced the mailing of definitive proxy materials for its Annual Meeting of Shareholders on May 12, 2021. Shareholders of record as of March 24, 2021, are eligible to vote. The Board emphasizes its commitment to enhancing shareholder value through a new growth strategy initiated in October 2020, which has led to a 200% stock price increase, outperforming the S&P 500. Additionally, digital sales grew over 20% year-over-year in Q4 2020. The Board urges shareholders to reject the activist group's proxy card, asserting that their nominees would hinder progress.

Positive

• Stock price increased over 200% since new strategy launch, outperforming S&P 500 by 185%.
• Digital sales grew more than 20% year-over-year in Q4 2020, accounting for over 40% of total sales.

Negative

• Activist investors are trying to gain five board seats, which could disrupt current momentum.

Kohl’s Corporation (NYSE:KSS) (“Kohl’s” or the “Company”) today mailed definitive proxy materials previously filed with the Securities and Exchange Commission (“SEC”) in connection with the Company’s Annual Meeting of Shareholders (the “Annual Meeting”), which is scheduled to be held on May 12, 2021. Kohl’s shareholders of record as of the close of business on March 24, 2021 will be entitled to vote at the Annual Meeting.

In conjunction with the definitive proxy mailing, Kohl’s is providing the following letter from the Company’s Board of Directors to shareholders:

***

PROTECT THE VALUE OF YOUR INVESTMENT IN KOHL’S – VOTE THE BLUE PROXY CARD TODAY FOR ALL OF KOHL’S HIGHLY QUALIFIED DIRECTOR NOMINEES.

March 24, 2021

Dear Fellow Shareholder:

Kohl’s Board and management are acting decisively to create value for all shareholders. In October 2020, we announced a new strategy to accelerate Kohl’s top line growth and enhance long-term profitability, and we are already seeing significant progress. Our third and fourth quarter 2020 results showed continued sequential improvement and exceeded expectations.

Investors and analysts have taken notice. Since launching our strategy, our stock price has increased by more than 200%, outperforming the S&P 500 by more than 185%.¹

We are delivering on initiatives which are positioning us for long-term success and allowing us to capture market share from the ongoing retail industry disruption. For example, in the fourth quarter of 2020 we grew digital sales more than 20% year-over-year, accounting for more than 40% of sales, with our stores still playing a critical role in supporting the heightened demand.

As you may know, a group of activist investors (the “Activists”) has recently accumulated a position in Kohl’s and is seeking five seats on our Board of Directors. Kohl’s is committed to engaging constructively with all of our shareholders and will continue to listen to the Activists. But we strongly believe that the election of the Activists’ nominees would disrupt our momentum and would not benefit our shareholders over the long term. We urge you to simply discard any White proxy card you may receive from the Activists.

The Kohl’s Board brings a diverse and relevant set of experience

FAQ

What is the date of Kohl's Annual Meeting of Shareholders in 2021?

Kohl's Annual Meeting of Shareholders is scheduled for May 12, 2021.

How much has Kohl's stock price increased since the new strategy was announced?

Kohl's stock price has increased by over 200% since the new strategy was announced in October 2020.

What percentage of sales did Kohl's digital sales account for in Q4 2020?

In Q4 2020, digital sales accounted for more than 40% of Kohl's total sales.

Who is seeking board seats at Kohl's?

A group of activist investors is seeking five seats on Kohl's Board of Directors.

How should shareholders vote regarding the activist group's proxy card?

Kohl's Board urges shareholders to discard any White proxy card received from the activist group.