Kohl’s Stock Declines as CEO Steps Down

Key Takeaways:

Kohl’s shares dropped 3.5% in premarket trading after announcing CEO Tom Kingsbury's departure.

Kingsbury will step down on January 15, 2025, and will be succeeded by Ashley Buchanan, the current CEO of The Michaels Companies.

The retailer has faced ongoing challenges, with shares down nearly 36% this year due to declining sales.

Kohl's (KSS) experienced a premarket stock decline after confirming that CEO Tom Kingsbury, who has been at the helm for less than two years, will step down in January 2025. Kingsbury, initially appointed interim CEO in late 2022 before officially taking the role in February 2023, will transition to an advisory role until his planned retirement in May.

Ashley Buchanan, recognized for his leadership at The Michaels Companies, where he boosted profitability, operational efficiency, and e-commerce growth, will replace Kingsbury. Buchanan also brings experience from senior roles at Walmart and its Sam's Club division.

Kohl's board chair Michael Bender praised Kingsbury’s efforts, stating that under his leadership, the company began a transformation to enhance its product offerings, store experience, and long-term financial performance. However, the retailer continues to struggle with falling sales, contributing to its significant stock decline this year.

Bender also emphasized Buchanan's track record, noting her success at Michaels in driving financial improvements and streamlining operations.

Shares of Kohl's, which is set to post its third-quarter results Tuesday morning, are down 36% this year through Monday's close. 

Khol remains under scrutiny as it navigates this leadership change during a challenging retail environment.