#1TOMMY HILFIGER KOHL'S C UN AR Q2 2022 Results Presentation August 18, 2022 KOHL'S SEPHORA ACAVINE NO PARKING FIRE adidas id adidas#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, risks described more fully in Item 1A in the Company's Annual Report on Form 10-K and Item 1A of Part II of the Company's Quarterly Report on Form 10-Q for the first quarter of fiscal 2022, which are expressly incorporated herein by reference, and other factors as may periodically be described in the Company'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 macroeconomic conditions such as inflation and the 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 Free Cash Flow. Reconciliations of all non-GAAP measures to the most directly comparable GAAP measures are included in the Appendix of this presentation. KOHL'S KOHL'S SEPHORA NO PARKING FIRE LANE 1300 30 2#3KOHL'S Q2 2022 Results Presentation KOHL'S Q2 2022 Results 4 Updated 2022 Outlook 10 Our Strategy 12 3#4KOHL'S Q2 2022 Results 4#5Q2 2022 Summary Key Takeaways • A weakening macro environment, high inflation and dampened consumer spending are having broad implications across much of retail, especially in discretionary categories like apparel. Given our penetration in these discretionary categories, this is disproportionately impacting Kohl's. • Our Q2 results reflect a middle-income customer that has become more cost conscious and is feeling greater pressure on their budget -- we are seeing customers make fewer shopping trips, spend less per transaction, and shift towards our value-oriented private brands. • Continuing to make progress in our strategic transformation, and now have nearly 600 of our stores recently refreshed and reflecting our forward vision as the leading destination for the active and casual lifestyle, with Sephora as a key cornerstone • Sephora at Kohl's continues to exceed expectations driving incremental sales and attracting new customers in stores with a Sephora shop-in-shop ● Entered into $500M ASR agreement on August 18 and remain firmly committed to our current dividend Focused on maintaining strong balance sheet with long-term objective of sustaining Investment Grade rating Q2 2022 S+SEPHORA SEPHORA • . KOHL'S • • Comparable sales decreased (7.7%) versus Q2 2021; net sales decreased (8.5%) Gross margin decreased (290 bps) compared to last year due to increased freight costs and product cost inflation, as well as elevated promotions SG&A expense increased 3.4% in Q2, driven largely by investments in key strategic initiatives, including Sephora store openings and store refreshes, as well as higher wages and transportation costs Operating margin of of 6.5% in Q2 2022 with diluted earnings per share of $1.11 Inventory increased 48% versus last year due to lower sales and unique factors, including investment in beauty, higher in-transit and pack and hold inventory; excluding the unique factors, inventory increased 27% to last year and decreased (8%) to Q2 2019 KOHLS what are you looking for today? Continue shoppin Pickup Park See move tas Offers for your cat CHECHOU? $64.00 Apply cospons Sale $42.00 Women's Eddie Bauer Everytry Flex Maid Plan SMALL Color A Force Stu Sat Jan 20-Wed Feb 2 Sove for Later Women's Crot & Barrow The Ex Shirt S: LARGE Cor Red Maid alryber 5#6Q2 Key Metrics Consolidated Statement of Operations (Dollars in Millions) Net Sales Total Revenue Gross Margin Rate SG&A Depreciation Operating Income Interest Expense Provision for Income Taxes Net Income Diluted EPS Key Balance Sheet Items (Dollars in Millions) Cash and Cash Equivalents Merchandise Inventories Accounts Payable Borrowings under revolving credit facility Current portion of Long-term debt Long-term Debt Key Cash Flow items (Dollars in Millions) Operating Cash Flow Capital Expenditures Net, Finance lease and Financing obligations Free Cash Flow (1) KOHL'S (1) Free Cash Flow is a non-GAAP financial measures. Please refer to the reconciliation included in the Appendix for more information. Three Months Ended July 30, 2022 $ July 31, 2021 3,863 $ 4,223 4,087 4,447 39.6% 42.5% 1,283 1,241 206 210 266 570 77 62 46 126 143 382 $1.11 $2.48 July 30, 2022 July 31, 2021 $ 222 $ 2,569 4,034 2,733 1,497 1,495 79 164 1,747 1,909 July 30, 2022 Three Months Ended Six Months Ended $ (86) $ (546) (327) (548) (25) (50) SA (438) SA (1,144) 6#7Q2 2022 Gross Margin & SG&A Expense Performance Gross Margin Decreased (290 bps) versus Q2 2021 SG&A Expense Deleveraged (351 bps) vs Q2 2021 42.5% 39.6% Q2 2021 Q2 2022 Gross Margin Takeaways Q2 2022 % Total Revenue . Elevated freight costs due to global supply chain challenges · . Higher product costs driven by inflation • Increased promotional activity KOHL'S $1,283M $1,241M 27.9% Q2 2021 31.4% Q2 2022 Q2 2022 SG&A Takeaways Incremental growth investments in our stores, including Sephora and store refreshes totaling $36 million • Higher wages and transportation costs 7#8Q2 Inventory impacted by unique factors +$269M +$730M +$220M +$82M $4,034M $2,733M +27% Accounted for additional +21% Q2 2021 Core In-Transit Sephora / Beauty Pack & Hold Q2 2022 Q2 2022 Inventory Increased 48% Y/Y; excluding unique factors, inventory increased 27% Y/Y and declined (8%) to Q2 2019 • In-transit inventory increased as we incorporated additional transportation time to ensure we meet consumer demand • • Sephora / Beauty inventory increased to support the 400 Sephora shops opening in 2022 Pack & hold strategies were leveraged for late holiday receipts including sleepwear and fleece KOHL'S 8#9Sephora at Kohl's continues to drive impressive results in Q2 655 1010 NOLLE KES+SEPHOR Phoen FETHO T W CAUDALIE . ● . . Kohl's stores with Sephora continue to outperform the balance of chain, attracting new customers and driving traffic The partnership is attracting new, younger, and more diverse customers. Customers that shop Sephora at Kohl's visit more frequently than our average customer. 400 Sephora stores to open in 2022 (48 opened in Q1, 292 opened in Q2, and remaining 60 planned in Q3); will open another 250 shops in 2023, taking our total to 850 2,500 sq. ft. shops Working with Sephora to design a smaller footprint concept for our remaining 300 stores, creating a Sephora presence across our entire store base Targeting $2 billion in sales and highly accretive to operating margin KOHL'S KORA PARMACY 515 GLOW Wa SCC EATIN SEPHORA UM ECAT wom MARC JACOBS HOLLYWOOD CALICORNIA GLAMGLOW -mid to from nottoyant moussant à l'argile ELIZABETH TAMES SEP Rouge Infusion 9#10KOHL'S Updated 2022 Outlook 10#112022 Updated Outlook Metric Net Sales Full Year Guidance (5%) to (6%) versus 2021 Operating Margin 4.2% to 4.5% EPS (MERS SEPHORA $2.80 to $3.20 KOHL'S+SEPHORA Capital Allocation Strategy • Capex: Approximately $825 million . Dividend: $0.50 quarterly dividend payable on September 21, 2022 • Share Repurchase Program: . Repurchased $158M in shares in Q1 2022 and entered into $500M ASR agreement on August 18, 2022 KOHL'S Alfer www. WO ONE A TOMMY HILFIGER Eddie Bauer NIKE FLX DRAPER JAMES RSVP 11#12KOHL'S Our Strategy 12#13Our Strategy Introduced Oct. 2020 The most trusted retailer of choice for the Active and Casual lifestyle Drive Top Line Growth Destination for Active & Casual Lifestyle Leading with Loyalty & Value Differentiated Omnichannel Experience KOHL'S St Expand Operating Margin Disciplined Capital Management Strong Organizational Core Operating Margin Goal of 7% to 8% Maintain Strong Balance Sheet Agile, Accountable & Inclusive Culture Creating Long-term Shareholder Value ↑ Expand operating margin Return to growth Solid cash flow generation Maintain strong balance sheet $ Return capital to shareholders 13#14Committed to Creating Value Kohl's Long-term Financial Framework SALES GROWTH Low-Single Digits % Strong Balance Sheet KOHL'S (1) Mid-to-High single digits EPS growth off of FY22 base OPERATING MARGIN EPS GROWTH 1 Mid-to-High + 7% to 8% Single Digits % Capital Allocation Principles Invest in Growth Significant Capital Returns 14#15Multiple initiatives to support future growth adidas E GELO YO CONETHE fresh MUST VALUED CUSTOMER KOHL'S oco 0000 000 00 MOST VALUED CUSTOMER KOHL'S Contiene shopping Qwhat are you looking for today? www.red FREE Offers for your cant CHECKOUT $66.00 e-bstanse choing Pickup Park Your Cabbana See may a 0 Apply coupons Women's Eddie Bauer Everyty Flex Paid Flat Shirt So SMALL Celar As Fone Su 142.00 Save for Later 8 Sat Jan 20-Wed Feb 2 Smed try to 30 Wom's Crot & Barrow The Extra Soft Plaid Flannel Shirt LARGE Cifor Red Naid Only & eft Destination for the Active & Casual Lifestyle • Be a leading destination for casual . and active apparel for the family • Women's: Focus on adjacent categories including dress and elevated casual, and amplify inclusivity • Men's: Recent brand introductions of • Tommy Hilfiger, Eddie Bauer, Hurley, and Calvin Klein Denim: Buffalo Jeans and Levi's Silver Tab bring excitement and premium denim to Kohl's Active: Fuel growth in Active to at least 30% of sales, driven by key national brands (Nike, Under Armour, Adidas) Grow Sephora to a $2 Billion Business • Kohl's stores with Sephora continue to outperform the balance of chain, attracting new customers and driving traffic • ~600 Sephora shops open to date, with another 250 planned for 2023, taking our total to 850 2,500 sq. ft. shops Working with Sephora to design a smaller footprint concept for our remaining 300 stores, creating a Sephora presence across our entire store base • Drive innovation across partnership (cross-company BOPUS, impulse merchandising, Sephora gift cards) Expanding holiday gifting assortment and increasing marketing investment to drive traffic during holiday 2022 Leading with Loyalty & Value • Kohl's Cash: Iconic and differentiated loyalty device that provides a fly-wheel effect on customer return visits ● Kohl's Rewards: 30M+ loyalty members spend 2x more than non-loyalty members Kohl's Card: Industry-leading private. label credit card Enhanced rewards to get 50% more on every purchase (7.5%) Launching co-branded card Loyalty platform drives enhanced personalized marketing and efficiencies Differentiated Omnichannel Experience • • Planning to open 100+ new smaller format stores in the next several years, expanding reach with $500M+ sales opportunity Expanding omni capabilities in stores Self-service BOPUS in all stores in 2022 Piloting self-returns in 10 stores Testing self-service checkout Enhancing digital experience to drive growth Expanded online assortment Kohl's Media Network KOHL'S 15#16We remain confident in our ability to expand operating margin to 7% to 8% Gross Margin Drivers • Drive inventory turn of 4.0x+ ● Dynamic inventory allocation Inventory Management • Strategic focus on more productive categories Sourcing Cost Savings SG&A Expense Management Initiatives Transform labor across stores and fulfillment centers to mitigate wage inflation Scale self-service across chain • Drive productivity across fulfillment centers . Continue to leverage our centralized sourcing and direct factory negotiations • Developing strategies to further reduce reliance on third party agents + Build on initial success in improving marketing efficiency • Goal to lower spend ratio to 4.0% of sales or below • Reduced marketing expenses by more than $130M since 2019 Optimizing Price / Promotion Strategies Simplified pricing while reducing promoted offers • Greater deployment of targeted and personalized offers. Focused on maintaining technology efficiency Reduced technology expenses by more than $100M since 2019 • Rebalanced technology staff with more internal labor KOHL'S Gross Margin 36% to 37% SG&A Expense Ratio 27% to 28% We are confident in our long-term ability to navigate ongoing margin pressure from cost inflation, higher freight expense, wage investments, and increasing digital penetration 16#17...And are committed to returning capital to shareholders Maintain strong balance sheet with long-term objective of maintaining Investment Grade rating DIVIDEND SHARE REPURCHASES Remain firmly committed to our current dividend $500M ASR underscores our steadfast confidence in Kohl's future and focus on creating shareholder value KOHL'S LIABILITY MANAGEMENT Plan to retire the 2023 bond maturities totaling $275M during 2023 We remain firmly committed to the health of our balance sheet and will plan our capital allocation decisions going forward to continue to reflect this priority. 17#18Long-standing focus on ESG Stewardship KOHL'S Cares for People and Planet Environmental, Social, and Governance stewardship is a key component of our strategy and our vision, and guides how we interact with our customers, employees, and our communities KOHL'S Culture 100,000 Associates 8 Business Resource Groups D&I Framework introduced in 2020 N WORLD'S MOST 2022| ETHICAL COMPANIES® WWW.ETHISPHERE.COM 4-TIME HONOREE TM DiversityInc TOP 2020 50 COMPANIES FOR DIVERSITY NOTEWORTHY Community $815M+ donations through Kohl's Cares 5.5M+ volunteer hours served by Kohl's associates Tripling Spend among diverse suppliers by 2025 BOYS & GIRLS CLUBS OF GREATER MILWAUKEE ALLIANCE FOR A Hit HEALTHIER GENERATION NAMI National Alliance on Mental Illness Note: See Kohl's 2021 ESG Report for a thorough overview of the company's efforts Climate Net Zero by 2050 committed to reducing GHG emissions 165 solar and wind locations 146 EV charging locations ENERGY STAR TOP 100 energyAWARD PARTNER OF THE YEAR Sustained Excellence BARRONS Most Sustainable Companies 2020 18#19KOHL'S Appendix 19#20Reconciliations KOHL'S Free Cash Flow ($ in millions) July 30, 2022 Three Months Ended Six Months Ended Net cash provided by operating activities. $ Acquisition of property and equipment Finance lease and financing obligation payments Proceeds from financing obligations. Free Cash Flow (86) $ (327) (546) (548) (26) (55) 1 5 LO $ (438) $ (1,144) 20#21KOHL'S KOHL'S Champio H PENTE BERAT Living proof frizont KOHL'S KOHES 20% off as