Kohl’s (KSS) stock underwent a massive rally on Thursday after the retailer fired CEO Ashley Buchanan. The former CEO was fired by the Board of Directors for cause after the company highlighted his direction of vendor transactions that included undisclosed conflicts of interest.
Kohl’s notes that Buchanan’s termination also removes him from its Board and he is no longer a nominee to be a Director at the Company’s 2025 Annual Meeting of Shareholders. The company also announced that Board Chairman Michael Bender will serve as interim CEO while it searches for a replacement CEO.
Chair of the Nominating and ESG Committee John Schlifske stated, “The Board has full confidence in Michael to serve our customers and associates as Interim CEO and deliver on our commitments to our shareholders.”
KSS Boosts Investor Confidence with Preliminary Q1 Results
Kohl’s noted that Buchanan’s termination wasn’t related to its performance or financial reporting. To bolster investor confidence, it provided preliminary guidance for Q1 2025. That includes comparable sales down 4.3% to 4%, operating income ranging from $40 million to $45 million, and diluted earnings per share of -24 cents to -20 cents. While that may not seem like a strong quarter, Wall Street’s diluted EPS estimate is -54 cents.
Investors appear pleased with the departure of Buchanan and Kohl’s preliminary Q1 results. This has the stock up 4.18% as of this writing, a welcome change from its 48.53% drop year-to-date. KSS shares have also fallen 68.84% over the last year.
Is KSS Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Kohl’s is Moderate Sell, based on six Hold and seven Sell ratings over the last three months. With that comes an average price target of $7.38, representing a potential 6.26% upside for KSS stock.
