Kohl's Stock Tumbles After Weak Results, CEO Departure News

Kohl's (KSS) shares are tumbling 17% successful premarket trading Tuesday aft nan retailer posted weaker-than-expected quarterly results and lowered its outlook.

The downbeat results and outlook travel a time aft nan section shop institution said that Chief Executive Officer (CEO) Tom Kingsbury is stepping down pursuing little than 2 years moving nan struggling retailer. Kingsbury, who was named CEO successful February 2023, will time off his station connected Jan. 15 and beryllium replaced by Ashley Buchanan, CEO of The Michaels Companies.

Kohl's reported third-quarter nett gross fell 9% year-over-year to $3.51 billion, pinch profit of $22 cardinal aliases 20 cents per share. Analysts polled by Visible Alpha expected $3.85 cardinal revenue, pinch nett income of $29.8 cardinal aliases 27 cents per share.

Kohl's lowered its outlook for full-year nett sales, now forecasting them to diminution by 7% to 8%, down from its anterior projection of a 4% to 6% decrease. It besides lowered its 2024 earnings per stock (EPS) estimate to $1.20 to $1.50 from $1.75 to $2.25.

Outgoing CEO Kingsbury to Stay connected Until May arsenic Advisor

Kingsbury will enactment connected successful an advisory domiciled to Buchanan, who antecedently held elder positions astatine Walmart (WMT) and its Sam's Club division, Kohl's said. 

Kingsbury, who became interim CEO astatine nan extremity of 2022 and antecedently ran Burlington Stores (BURL), will stay successful nan advisory domiciled until retiring successful May adjacent year, Kohl's said.

"Under his leadership, nan institution is undergoing a translator to elevate its merchandise portfolio, heighten nan shop acquisition and amended its semipermanent financial wellness and profitability," committee chair Michael Bender said.

Bender said that Buchanan improved Michaels' "profitability and rate travel while driving operational efficiencies crossed nan business," and besides ramped up nan crafts store's e-commerce business.

UPDATE—This article has been updated pinch Kohl's third-quarter results and nan latest stock value information