MENOMONEE FALLS, Wis. - Kohl’s Corporation (NYSE: KSS), a leading omnichannel retailer, announced today that Ashley Buchanan will take over as Chief Executive Officer effective January 15, succeeding Tom Kingsbury who is stepping down but will remain in an advisory role and retain his board seat until May 2025. Buchanan, a seasoned retail executive, comes from Michaels Companies (NASDAQ:MIK) where he has been CEO since 2020 and brings with him extensive experience from his previous roles at Walmart (NYSE:WMT) and Sam's Club.
Board Chair Michael Bender expressed gratitude for Kingsbury's leadership and his contribution to the company, noting the transformation underway to improve Kohl’s product offerings, store experience, and financial health. He also welcomed Buchanan, highlighting his retail experience and successful track record at Michaels, where he improved profitability and operational efficiencies, and at Walmart, where he led operations, merchandising, and e-commerce initiatives.
Kingsbury, who joined the Kohl’s board in 2021 and served as interim CEO before his permanent appointment, expressed pride in the company’s focus on enhancing the customer experience and running a profitable business. He shared his optimism for the future of Kohl’s, its associates, customers, and shareholders.
Buchanan expressed his excitement about joining Kohl’s and his plans to evolve the business, building on the brand's strengths and customer base to create a compelling retail experience for the future. His tenure at Michaels Companies saw him improve profitability, grow the digital business, and introduce new technology and e-commerce strategies to meet customer needs effectively.
Kohl’s is set to announce its third-quarter earnings results tomorrow morning, providing an update on the company's financial performance. The retailer operates over 1,100 stores in 49 states, with a strong online presence through Kohls.com and the Kohl's App, and is committed to making a positive impact in the communities it serves.
This leadership transition is based on a press release statement from Kohl’s Corporation.
In other recent news, Kohl's Corporation (NYSE:KSS) has been the subject of multiple analyst adjustments. Citi lowered its price target for Kohl's to $18, maintaining a neutral stance, while TD Cowen and JPMorgan (NYSE:JPM) downgraded the company's stock due to ongoing negative sales trends. TD Cowen maintains a "hold" rating with a price target of $21.00, and JPMorgan downgraded the stock to "underweight" with a price target of $19.00. Despite these adjustments, Kohl's reported a 13% increase in Q2 2024 earnings, even with a 5.1% decline in same-store sales.
Looking ahead, Kohl's has revised its full-year 2024 EPS outlook upwards to $1.75-$2.25, surpassing the previous guidance of $1.25-$1.85. Baird also adjusted its outlook on Kohl's shares, reducing the price target to $25 from $27, while maintaining an "outperform" rating. Deutsche Bank (ETR:DBKGn), on the other hand, lowered its price target on Gerresheimer stock while maintaining a "buy" rating amid cautious guidance.
Finally, TD Cowen reiterated its "buy" rating and $40.00 price target for Bath & Body Works Inc., highlighting the company's strategic positioning amidst potential ocean freight challenges. These recent developments underscore the ongoing shifts in the retail industry as companies navigate various challenges and opportunities.
InvestingPro Insights
As Kohl's Corporation (NYSE: KSS) prepares for a leadership transition, InvestingPro data provides valuable context for investors. The company's current market capitalization stands at $2.05 billion, reflecting the challenges it faces in a competitive retail landscape.
Despite these challenges, Kohl's presents some intriguing financial metrics. The company's P/E ratio of 7.19 suggests that it may be undervalued compared to its peers. This is further supported by an InvestingPro Tip indicating that Kohl's is "trading at a low earnings multiple." This valuation could be attractive to value investors, especially considering the incoming CEO's track record of improving profitability at his previous company.
Another noteworthy aspect is Kohl's dividend yield, which currently stands at an impressive 11.74%. An InvestingPro Tip highlights that the company "pays a significant dividend to shareholders" and has "maintained dividend payments for 14 consecutive years." This could be particularly appealing to income-focused investors, although it's important to consider the sustainability of such high yields in the context of the company's overall financial health.
It's worth noting that Kohl's faces some headwinds. The company's revenue growth in the last twelve months was -3.59%, indicating a challenging sales environment. This aligns with an InvestingPro Tip suggesting that "analysts anticipate sales decline in the current year."
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 11 more tips available for Kohl's. These could provide crucial information as the company navigates this leadership change and aims to improve its market position.
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