Kohl’s announced on Monday that interim CEO Michael Bender will become the ailing retailer’s permanent new CEO—making him the third chief executive to head the company in about three years.
The news comes a day before the Wisconsin-based department store chain releases its third-quarter earnings report on Tuesday, November 25, at 9 a.m.
“Over the past several months as interim CEO, Michael has proven to be an exceptional leader for Kohl’s—progressively improving results, driving short and long-term strategy, and positively impacting cultural change,” board chair John Schlifske said in a statement. Bender has served as interim CEO for the last six and a half months.
Shares in Kohl’s Corp. (NYSE: KSS) rose sharply late Monday morning on the news and leveled off by midday, to just over 1% at the time of this writing.
Bender replaces former CEO Ashley Buchanan, who was removed in May after an investigation determined he had an inappropriate personal relationship with a vendor.
Like many U.S. retailers, Kohl’s is struggling with declining in-store foot traffic and competition from online retailers like Amazon. At the same time, American consumers are pulling back on spending amid rising inflation and an increasing overall cost of living and goods.
Kohl’s financials
Kohl’s second-quarter earnings results beat expectations, but net sales fell 5.1% year over year, to $3.3 billion, with comparable sales down 4.2%. Its revised full-year earnings guidance forecast a 5% to 6% decline in net sales for fiscal 2025.
On that earnings call, Bender attributed the slower sales to economic forces and to lower-income and middle-class consumers buying less expensive goods.