Kohl’s Corporation (NYSE:KSS) Q4 2022 Earnings Call Transcript

Jill Timm: Sure. I think for CapEx, obviously, Tracy, we’ve talked about one of our core strategies being to strengthen back to the balance sheet. So, we did make that reduction this year in terms of really focusing on the return projects. So, of course, still going to invest back in Sephora and then adding those 50 small stores now that we have a solution to hit all of our stores from a Sephora perspective, but really being able to pull back into those more meaningful areas just given the fact that we are trying to build back our cash. So given what we spent this year and next year is obviously hitting $2.5 billion is probably not where we’re going to be at this point. But we’ll continue to assess what that CapEx needs to be really based on a return model.

But just to get to the math, we won’t be making up that difference over the next couple of years. I think we’re really thoughtful. And as we’ve said through this whole call, it’s just going to be long term. So we’re going to build back to that position of strength from a balance sheet perspective, but that’s going to also take some time because we need to make the right investments for growth for our business as well. And then, in terms of Amazon, I think Amazon is one of many, hopefully, you’ve heard today, initiatives that we’re looking to drive traffic with. So along with Sephora and even home décor, gifting, impulse, all things that will have customers coming in more to see the changes, it’s more impulse driven. So, we’re really going to just continue to be focused on all of our initiatives to drive topic, and Amazon is obviously one of those key items, Sephora being another one in terms of driving new customers and traffic into the store from a replenishment perspective, and then just really the whole store experience to drive more newness, ore exploration.

So I think Amazon is just a key to that strategy in total.

Tom Kingsbury: Thanks for joining us today.

Operator: And this concludes today’s conference call. You may now disconnect.