Kohl’s fully draws $1 billion credit line for financial flexibility during coronavirus outbreak

Kohl’s headquarters
Kohl’s headquarters

Last updated on April 28th, 2020 at 02:17 pm

Menomonee Falls-based Kohl’s Corp. has fully drawn its $1 billion unsecured credit facility to increase its cash position and preserve financial flexibility during the coronavirus outbreak, according to the company’s annual securities filing.

“We have temporarily closed some retail locations, reduced store operating hours, and have seen a reduction in consumer traffic, all resulting in a negative impact to company sales,” the filing says. “While the disruption is currently expected to be temporary, there is uncertainty around the duration. Therefore, while we expect this matter to negatively impact our business, results of operations, and financial position, the related financial impact cannot be reasonably estimated at this time.”

The filing also notes that there were no amounts outstanding on the credit facility as of Feb. 2. Kohl’s ended its most recent fiscal year on Feb. 1 with $723 million in cash and cash equivalents on its balance sheet.

In a March 13 filing, Kohl’s indicated it had already experienced a softening in customer demand, particularly in areas most affected by the virus. Butt he company said at the time that digital demand had not declined. Digital sales had already been growing for the company, accounting for 24% or around $4.53 billion in sales last year, up from 21% or $4.03 billion in 2018.

“The company is maintaining its strong focus on expense management and cost control, while leveraging the strength of its balance sheet,” the March 13 filing said.

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Arthur Thomas
Arthur covers manufacturing for BizTimes. He previously was managing editor at The Waukesha Freeman. He is a graduate of Carroll University and did graduate coursework at Marquette. A native of southeastern Wisconsin, he is also a nationally certified gymnastics judge and enjoys golf on the weekends.