Gap Inc. And Gap Foundation Increase Support For Relief Efforts Following Recent Natural Disasters

The Postal Regulatory Commission has opened an inquiry into the Postal Service’s internal Service Performance Measurement (SPM) system for Market Dominant mail products. The Commission’s goal in this proceeding is to address concerns that the SPM may not accurately represent customer experience in the current environment. The Commission intends to carefully examine how measurements reported by the SPM are derived and whether the SPM is currently producing accurate, reliable, and representative results as the law requires. If the Commission’s review reveals that the SPM is not producing accurate, reliable, and representative results, the Commission would identify changes to the SPM to align it with legal requirements.

2020 Financial Highlights •Delivered sales of $11.8 billion, up 2.7%, and up 3.5% on an organic, daily, constant currency basis compared to the prior year (excluding divestitures and foreign exchange) •Generated reported operating earnings of $1.0 billion; adjusted operating earnings of $1.3 billion •Achieved $1.1 billion of operating cash flow and returned over $0.9 billion to shareholders through dividends and share repurchases. Fourth Quarter Financial Highlights •Delivered sales of $2.9 billion, up 3.3%, and up 5.6% on an organic, daily, constant currency basis compared to the fourth quarter 2019 (excluding divestitures and foreign exchange) •Generated reported operating earnings of $275 million; adjusted operating earnings of $295 million •Achieved reported operating margin of 9.4%, up 300 basis points; adjusted operating margin of 10.0%, down 75 basis points

Kohl’s Corporation announced that following the receipt of final proposals, the Kohl’s Board of Directors has entered into exclusive negotiations with Franchise Group, Inc. (“FRG”), a holding company of a collection of market-leading and emerging brands, for a period of three weeks in relation to FRG’s proposal to acquire the Company for $60.00 per share. The purpose of the exclusive period is to allow FRG and its financing partners to finalize due diligence and financing arrangements and for the parties to complete the negotiation of binding documentation. The transaction remains subject to approvals of the Boards of Directors of both companies. There can be no assurances that any agreement will be reached or that a transaction will be agreed or completed on the terms set forth above or otherwise. The Company will have no further comment until an agreement is reached or the discussions are terminated.