The stock of the cheap department shop has been losing ground to its competitors by a significant margin and had just closed at a 30-year low.
Perhaps as a result of Kohl’s Corp.’s announcement on Thursday that Chief Executive Ashley Buchanan had been sacked for reason after less than four months on the job, investors were applauding.
Buchanan was fired for allegedly ordering the business to utilize a vendor who was established by a person with whom he had a “personal relationship.”
According to the firm, the arrangement featured “highly unusual terms favorable to the vendor.”
Additionally, according to Kohl’s board of directors, Buchanan “caused the company to enter into a multi-million dollar consulting agreement wherein the same individual was a part of the consulting team.”
According to unnamed sources quoted in a Wall Street Journal report, the person in question was Chandra Holt, the creator of the coffee drink company Incredibrew, who had served as CEO of Bed Bath & Beyond the previous year. According to the newspaper, the two were romantically involved.
Kohl’s claimed that Buchanan violated his employment compensation agreement by failing to disclose the nature of the vendor relationship, which was mandated by the company’s code of ethics.
Numerous news agencies claimed that Buchanan declined to comment on the matter.
Michael Bender was appointed interim CEO of Kohl’s (KSS). In July 2019, Bender became a member of the company’s board of directors, and in May 2024, he was appointed board chair.
Thursday saw a 9.6% increase in the stock. Since it ended at a 30-year low of $6.13 on April 16, it has now recovered more than 17.5%.
The stock’s poor performance during Buchanan’s 106-day term as CEO could be one factor contributing to the rise.
January 15 was Buchanan’s first day in the position. Before Apollo Global Management Inc. (APO) bought the arts and crafts store Michaels Companies in 2021 for $3.3 billion, he served as its CEO.
Through Wednesday’s close, Kohl’s stock fell 47.2% while he was the company’s CEO.
Over the same period, the stock of Kohl’s rivals TJX Co. (TJX) increased 7.9%, while shares of Burlington Stores Inc. (BURL) fell 20.6% and Ross Stores Inc. (ROST) fell 6.8%.
In the same time frame, the S&P 500 index SPX decreased 4.7%, while the SPDR S&P Retail exchange-traded fund XRT fell 11.5%.
This year was not the only year that Kohl’s stock began to decline. In 2024, it fell by a record-breaking 51.1%, when the SPDR retail ETF increased by 10.1%.
The news release on Buchanan’s departure offers even another cause for investors to be celebrating. Additionally, the business stated that it anticipated reporting a first-quarter loss of 20–24 cents per share. That is less than half of the average analyst forecast of 54 cents per share that FactSet has calculated.
Additionally, the business anticipates that comparable sales—those at locations that have been operating for at least a year—will drop by 4% to 4.3% from the previous year, which is better than the 6.4% reduction that the current FactSet average predicts.
Since March 2022, the business has not reported an increase in comparable sales. On or around May 21, Kohl’s is expected to release its fiscal first-quarter earnings.
Buchanan will forfeit all equity rewards, including recruitment awards made as of January 15, as a result of his termination for cause.
Additionally, he will have to pay Kohl’s $2.5 million in pro rata reimbursement for his signing incentive.
“Mr. Buchanan is not entitled to any payments under the employee compensation agreement as a result of his termination for cause, other than accrued obligations and continuing benefits,” the business stated.
According to Buchanan’s most recent quarterly report, which was published in March 2025, the firm has made numerous adjustments to its price points and product offerings in an effort to draw in new clients while creating “friction” with its existing clientele.
