Ashley Buchanan takes helm on Jan. 15, bringing e-commerce experience to department-store chain
Kohl's on Monday said Tom Kingsbury would step down as its chief executive in January and announced plans to bring in a digitally-focused veteran of big-box retail chain Walmart Inc. and craft-supplies store Michaels to take over.
The move is the latest leadership change for the department-store chain and the broader retail and apparel industry, amid enduring consumer wariness over higher costs of living that have dampened demand for clothing and home goods.
Kohl's said Ashley Buchanan would take over as its chief executive on Jan. 15. Kingsbury will leave the CEO role at that time, but will help with the leadership transition and stay on Kohl's board through his retirement in May.
Kohl's shares fell 4% after hours on Monday, after finishing regular trading up 7.7%.
The company announced the leadership change a day before it was set to report quarterly earnings. As of Monday's close, shares of Kohl's are down 36% so far this year.
Kingsbury became Kohl's interim CEO in 2022 - after Michelle Gass left the role - and had agreed to take on the role permanently through May 2025. Gass is currently the chief executive of Levi Strauss & Co .
Other retailers such as Nike and Under Armour have announced CEO changes this year, as they deal with rising competition and a more muted demand backdrop. Urban Outfitters Inc. $(URBN)$ this year hired a new president to oversee its struggling namesake stores in North America, and Gap, Inc got a new chief executive last year.
Michael Bender, Kohl's board chair, said Monday that during Buchanan's time at Michaels, "he improved profitability and cash flow while driving operational efficiencies across the business. He also introduced new ways to leverage technology and e-commerce, allowing Michaels to more effectively meet customers where they are today."
Before that, Buchanan worked as chief merchandising and chief operating officer for Walmart's U.S. e-commerce segment. He was also the chief merchant at Sam's Club. He has also held jobs at Dell Technologies Inc. and Accenture PLC .
When Kohl's reported quarterly results in August, its sales missed expectations. Management said that while it attracted more new shoppers over that time, with gains in its in-store Sephora outlets, "customers exhibited more discretion in their spending."
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