By Sabrina Escobar
Kohl's stock fell in after-hour trading Monday following the department store's announcement that CEO Tom Kingsbury is retiring at the end of the year.
The company has named Ashley Buchanan, current CEO of Michaels, as his replacement. Buchanan has headed up the arts-and-crafts supplier since 2020, and previously held various senior executive roles at Walmart and its Sam's Club unit during his 13 years at the company.
"His vast retail experience leading operations, merchandising, and e-commerce at Walmart and his past five years as CEO of Michaels will bring a steady, proven, innovative leader to Kohl's as we continue to transform the business and drive future growth," said Michael Bender, chair of Kohl's board of directors.
Shares of Kohl's were falling 4.9% to $17.45 in the after-hour session. The stock has shed 36% this year.
Kingsbury joined Kohls' board in 2021 at the behest of activist investor Macellum. He stepped up as interim CEO in 2022 when then-chief executive Michelle Gass left to take the helm at Levi Strauss. He was appointed permanent CEO in 2023. Kingsbury plans to step down Jan. 15, but will stay on in an advisory role. He will retain his position on the board through his retirement in May 2025, after which the board's size will be reduced by one.
Kohl's is scheduled to announce results for its fiscal third quarter Tuesday morning. Analysts expect the company will report earnings of 28 cents a share, on $3.6 billion in revenue. Same-store sales are projected to decline by 5.1% compared with the year-ago quarter.
Write to Sabrina Escobar at sabrina.escobar@barrons.com
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November 25, 2024 18:09 ET (23:09 GMT)
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