Kohl's CEO to depart after less than two years at the helm
Adds analyst comment in paragraph 10, updates shares in paragraph 3
By Anuja Bharat Mistry
Nov 25 (Reuters) -Kohl's KSS.N CEO Tom Kingsbury will step down after less than two years at the helm, paving the way for former Walmart WMT.N executive Ashley Buchanan to take on the role as the department store chain looks to execute a turnaround.
The company announced the transition on the eve of its third-quarter earnings report, noting that Kingsbury will remain in an advisory role and retain his board seat until he retires in May.
Kohl's shares fell nearly 5% after market close.
The appointment underscores Kohl's latest attempt to improve its financial profile. Like other department stores, the company has been struggling with patchy demand from bargain-hunting customers while spending on trendier clothing such as wide-legged jeans and logo-free shirts.
When Kingsbury was handed the job on a permanent basis in early 2023, Kohl's had been struggling with high inventories as customers dialed back spending, forcing the retailer to offer big discounts to clear their shelves.
Its beauty products partner Sephora, however, has been a bright spot.
Kohl's said Buchanan improved profitability at Michaels Companies, a specialty retailer of arts and crafts supplies, where he has been the CEO since 2020, and grew its digital business while simplifying its merchandise strategy.
Prior to Michaels, Buchanan was at retailer Walmart for 13 years, where he held a number of executive roles including chief merchandising and chief operating officer for Walmart U.S. e-Commerce.
Buchanan, who also sits on the board of department store Macy's M.N, will be the third CEO of Kohl's since mid-2018.
Since the company is struggling and in the middle of a turnaround plan, a CEO change right now might not be ideal, said David Swartz, senior equity analyst at Morningstar.
Kohl's shares have lost more than 40% since Kingsbury was named as interim CEO in December 2022.
The department store chain's net income is expected to halve to $30.54 million when it reports earnings on Tuesday, according to data compiled by LSEG.
Reporting by Anuja Bharat Mistry and Niket Nishant in Bengaluru; Editing by Shounak Dasgupta
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
