Kohl’s Desperately Appoints New CEO to End Losing Streak of 10 Straight Quarters

In the NFL, when a team loses five straight games with Aaron Rodgers at quarterback, the first to get the dreaded "come to the office" call is the coach. Fired on the spot, escorted out of the building (rinse and repeat). Well, it hasn’t exactly helped the Jets break their eternal curse. In retail, the equivalent move is tossing the CEO. Kohl’s latest maneuver? Swapping out CEO Tom Kingsbury for Ashley Buchanan, the guy who turned Michaels from a boring craft chain into a company the IRS will be auditing due to how much money they’re making selling fabric. 

Kingsbury’s tenure at Kohl’s wasn’t exactly a Sportscenter highlight reel. Since he took the helm in late 2022, the company’s stock has crumbled 45%, and comparable store sales have dropped ten straight quarters. Not exactly the results they were looking for after paying Kingsbury $1.5 million a year.

The numbers paint a pretty depressing picture. Revenues have flatlined at $4-$4.5 billion per quarter, profit margins are super thin, and the stock price is stuck in the trash can at around $22-$25 per share (a far cry from its $64 glory days in 2021). At this point, Kohl’s is setting records for how bad things can get if you don’t innovate.

Buchanan, the new qb guru coach, comes with some serious credentials. Thirteen years at Walmart? Check. Led Michaels through a digital transformation? Double-check. Looks like he’s got more retail strategy in his pinky finger than most executives have in their entire LinkedIn profile.

So, what’s Buchanan’s playbook? First, he’ll need a giant eraser because Kohl’s current strategy looks like someone doodled it during a boring meeting. With over 1,100 stores nationwide, it’s clear that some underperforming locations may need to face the same fate as Family Video (nostalgic, but no longer necessary). 

Second, he’ll have to drag Kohl’s e-commerce strategy into the modern age. Online sales only account for about 30% of Kohl’s revenue, while competitors like Target and Macy’s are sprinting ahead in the internet game. Third, the product lineup desperately needs a revamp. Those endless racks of plain tees and uninspired housewares aren’t going to cut it. Shoppers need a reason to choose Kohl’s over, well, literally anywhere else. And let’s be honest: another Kohl’s Cash promo isn’t going to be the magic wand this time.

Unlike with MicroStrategy, Wall Street is keeping its expectations in check this time. Analysts have set price targets ranging from $18 to $35, with most landing around $27… essentially saying, “We don’t know if this will work, but hey, let’s see what happens.” If Buchanan can pull off a couple of early wins, like decent Q4 holiday sales or a flashy restructuring plan in 2025, the stock might get some upgrades. But any hopes of a turnaround will have to wait, considering the stock is already down 19% today.

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Stock.News has positions in Walmart and Michael’s mentioned in article.