Kohl’s Sends Letter to Shareholders Highlighting Board Leadership and Robust Process

Hearst Magazines International today announced the launch of the print edition of Harper’s BAZAAR Italy, further expanding the iconic fashion brand’s digital, social and experiential presence in the Italian market. Daria Veledeeva, formerly the editor-in-chief of Harper’s BAZAAR Russia, has been appointed editor-in-chief and will oversee the content strategy and development of the magazine. The announcement was made today by Hearst Magazines International President Jonathan Wright and Hearst Italy CEO Giacomo Moletto. “The prestige and influence of the Harper’s BAZAAR brand in the U.S. and around the world is unmatched and the print expression is an important experience – our audience engages deeply and marketers can therefore connect with them in a more profound way,” Wright said. “With Daria’s leadership, vision, and deep connections in the fashion industry, Harper’s BAZAAR Italy will be a must-read for anyone who is passionate about fashion, culture and the issues that matter today.”

*Operating cash flow increased 16% to $59.3 billion for the trailing twelve months, compared with $51.2 billion for the trailing twelve months ended June 30, 2020. *Free cash flow decreased to $12.1 billion for the trailing twelve months, compared with $31.9 billion for the trailing twelve months ended June 30, 2020. *Net sales increased 27% to $113.1 billion in the second quarter, compared with $88.9 billion in second quarter 2020. Excluding the $2.5 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 24% compared with second quarter 2020. *Operating income increased to $7.7 billion in the second quarter, compared with $5.8 billion in second quarter 2020. *Net income increased to $7.8 billion in the second quarter, or $15.12 per diluted share, compared with $5.2 billion, or $10.30 per diluted share, in second quarter 2020.

Fiscal 2021 third quarter revenues declined 5 percent to $665 million. Key performance indicators included: *21 percent increase in National Media Group digital advertising revenues. Sessions grew 17 percent, led by PEOPLE, Allrecipes, Southern Living, and Martha Stewart. Meredith continues benefiting from its proprietary technology platform that brings together content, unique taxonomy, and first party data. *31 percent increase in National Media Group licensing/digital and other consumer driven revenues. Performance was driven by Apple News+, strong sales of Better Homes & Gardens-branded products at Walmart, and performance marketing via retail partners. *6 percent increase in non-political spot advertising and retransmission revenues. Non-political spot advertising growth was the first since the start of the COVID-19 pandemic, and was driven primarily by the professional services, gaming, and home categories. *19 percent decline in combined magazine advertising, subscription, and newsstand revenues. Advertising performance was impacted primarily by lower than expected performance in the food & beverage and prescription drug categories. Subscription revenue performance reflects a stable 36 million rate base and Meredith's ongoing strategy to engage subscribers directly. This strategy reduces revenue and increases profitability by fostering a stronger and more profitable relationship with subscribers, including the opportunity for rate increases over time. Newsstand performance was impacted primarily by lower demand and fewer issues published.