Kohl’s Comments on Investor Statement and Director Nominations

Kohl’s Corporation (NYSE:KSS) (“Kohl’s” or the “Company”) today issued the following statement in response to the press release and open letter published by the investor group consisting of Macellum Advisors GP, LLC, Legion Partners Holdings, LLC, Ancora Advisors, LLC, and 4010 Capital, LLC (collectively, “the Investor Group”). The Company also commented on the Investor Group’s announcement of its nomination of a controlling slate of nine directors for election to the Kohl’s Board of Directors (the “Board”) at the Company’s 2021 Annual Meeting of shareholders.

Kohl’s is committed to maintaining constructive engagement with all shareholders regarding the Company’s strategies and prospects. The Kohl’s Board and management team have been engaged in discussions with the Investor Group since early December, and we remain open to new ideas that will improve our operating performance and capital allocation.

However, we reject the Investor Group’s attempt to seize control of our Board and disrupt our momentum, especially considering that we are well underway in implementing a strong growth strategy and accelerating our performance, and we have refreshed half our Board with six new independent directors since 2016.

Today is the first time the Investor Group has shared any details about their plans to create value. Our new strategic plan already includes several initiatives they propose and we have also determined that other ideas they propose would not be accretive to shareholder value. The Company’s Board and management will continue to engage with the Investor Group with the goal of identifying new ideas that could enhance shareholder value.

New Strategic Plan to Accelerate Growth and Profitability; Major Long-Term Partnership with Sephora

Our Board and management team announced, in October 2020, a new vision and long-term strategic framework to accelerate our growth and profitability. The strategy, centered around the new vision to be the most trusted retailer of choice for the active and casual lifestyle, includes a goal of expanding our operating margin to 7% to 8%. The new strategy builds on progress the Company has made in recent years to strengthen the foundation and capabilities of the business.