Kohl's Faces Backlash from Longtime Shoppers as New CEO Looks to Revamp Operations

Kohl's shares are up 2.5% as customers protest changes made under former CEO Tom Kingsbury. Incoming CEO Ashley Buchanan is expected to reverse some of these changes, including closing 27 underperforming stores and downsizing fulfillment centers. Analysts have a Moderate Sell consensus rating on KSS stock, with an average price target of $14.08 per share implying 5.86% upside potential.

Kohl's Corporation (KSS), an omnichannel retailer based in Menomonee Falls, Wisconsin, experienced a surge in its stock price by 2.5% on January 20, 2025 [1]. This uptick follows customer protests against changes made during the tenure of former CEO Tom Kingsbury and anticipation of incoming CEO Ashley Buchanan's plans to reverse some of these initiatives.

Under Kingsbury's leadership, Kohl's closed 27 underperforming stores and downsized fulfillment centers, aiming to enhance efficiency and profitability [2]. Buchanan, who previously served as CEO of Michaels Companies, is expected to restore some of the retailer's past favorites and potentially reconsider these closures.

Analysts maintain a Moderate Sell consensus rating on KSS stock, with an average price target of $14.08 per share, implying a 5.86% upside potential [1]. This optimistic outlook stems from the belief that Buchanan's leadership could positively impact Kohl's sales and financial performance.

Despite the recent stock price increase, Kohl's faced challenges during the holiday season, with sales growing only 4% compared to the previous year [3]. The retail industry experienced mixed fortunes during the season, with Target and A&F reporting strong sales, while Macy's and Kohl's lagged behind [3].

Buchanan's appointment comes amid significant changes for Kohl's, including leadership shifts, dismal earnings reports, and economic headwinds [4]. As she takes the helm, investors and analysts will closely watch her decisions and their impact on Kohl's stock price and overall performance.

References:

[1] Stockanalysis.com. Kohl's Corporation (KSS). Retrieved January 21, 2025, from https://stockanalysis.com/stocks/kss/
[2] Invezz. Kohl's is closing 27 stores by April. Here's the list. Retrieved January 21, 2025, from https://www.invezz.com/news/stock-market-news/kohl-is-closing-27-stores-by-april-heres-the-list/?utm_source=rss
[3] PYMNTS. Retailers face mixed holiday season: Target and A&F excel, Macy's and Kohl's lag behind. Retrieved January 21, 2025, from https://www.pymnts.com/news/retail/2025/retail-holiday-sales-target-macys-kohl-2024/
[4] Fox Business. Kohl's to close 27 department stores nationwide — including 10 in California. Retrieved January 21, 2025, from https://www.foxbusiness.com/markets/kohl-to-close-27-department-stores-nationwide-including-10-in-california