Kohl’s Names New CEO Effective January 2025

Kohl’s has named a new CEO effective January 2025 after Tom Kingsbury steps down.

Per a press release, Kohl’s announced that Tom Kingsbury plans to step down as CEO, effective Jan. 15, 2025. However, he will not completely part ways with the retailer. Replacing Kingsbury is Ashley Buchanan. Prior, Buchanan was CEO of Michaels Companies and held senior executive roles at Walmart and Sam’s Club. 

Kingsbury will remain in an advisory role to the new CEO as well as retain his position on Kohl’s board of directors until a planned retirement in May of 2025. After Kingsbury exits, the number of board members will be reduced by one.

Kohl's Corp. announced CEO Tom Kingsbury will retire in 2025.https://t.co/YoWpjFp6HJ

— 620 WTMJ (@620wtmj) November 25, 2024

Board Chair Michael Bender said, “The Board is very grateful for Tom’s leadership and ongoing service to Kohl’s. Tom joined our Board in 2021. He then stepped up as interim CEO in 2022 and agreed to take the permanent position as CEO through May 2025. Under his leadership, the company is undergoing a transformation to elevate its product portfolio, enhance the store experience and improve its long-term financial health and profitability. On behalf of all Kohl’s associates, we thank Tom for his leadership, for his role working with the Board on our CEO search, and for supporting Ashley through this transition.”

Regarding Tom’s replacement, Bender added, “We are excited to welcome Ashley to Kohl’s. 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. During his 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. He has driven change by setting a clear vision, empowering teams, and practicing organizational accountability for results. We know he will be a great leader for Kohl’s and will bring a new perspective in our next chapter.”

CEO Transition Comes on the Heels of Kohl’s Dismal Third-Quarter Financial Results

On Nov. 26, Kohl’s released its third-quarter results ending Nov. 2, 2024. The report revealed the company’s financial decline, as net sales decreased by 8.8% and comparable sales decreased by 9.3%.

Kohl’s net income was $22 million, or $0.20 per diluted share. This compares to net income of $59 million, or $0.53 per diluted share, in the prior year. The company’s operating income was $98 million compared to $157 million in 2023. Also, as a percentage of total revenue, operating income was 2.7%, a decrease of 120 basis points year-over-year.

The company’s third-quarter inventory was $4.1 billion, a decrease of 3% year-over-year. Its operating cash flow was $195 million.

In a statement attached to the Q3 report, Kingsbury said, “Our third quarter results did not meet our expectations as sales remained soft in our apparel and footwear businesses. Although we had a strong collective performance across our key growth areas, including Sephora, home decor, gifting, and impulse, and also benefited from the opening of Babies “R” Us shops in 200 of our stores, these were unable to offset the declines in our core business. Importantly, we delivered gross margin expansion and managed expenses tightly in the quarter.”

“We are not satisfied with our performance in 2024 and are taking aggressive action to reverse the sales declines. We must execute at a higher level and ensure we are putting the customer first in everything we do. We are approaching our financial outlook for the year more conservatively given the third quarter underperformance and our expectation for a highly competitive holiday season,” Kingsbury concluded.