Kohl’s Interim CEO Michael Bender Will Keep Top Job

Kohl’s reports third-quarter earnings on Tuesday. (Alisha Jucevic / Bloomberg)

Key Points

• Michael Bender has been appointed permanent CEO of Kohl’s after serving as interim CEO since May, following improved financial results.
• Kohl’s second-quarter earnings exceeded expectations, and the company subsequently raised its guidance for the fiscal year.
• Kohl’s stock has increased by 11.4% this year, though same-store sales have declined for 14 consecutive quarters.

Kohl’s interim CEO Michael Bender gets to keep the top job after he improved the retailer’s financial results and corporate culture after a leadership crisis, the company said on Monday —the day before another earnings report comes out.

Bender has been interim CEO since early May, when Kohl’s fired Ashley Buchanan after only five months for unethical conduct. Buchanan had pushed a deal with a vendor headed by a woman who he had a relationship with.

At the time, Bender chaired Kohl’s board of directors; he joined the board in 2019 and will keep his seat. His leadership experience includes four years as CEO of optical retailer Eyemart Express, from January 2018 to April 2022, and management positions at Walmart.

Kohl’s directors unanimously voted for Bender after a comprehensive search by an outside firm, said board Chair John Schlifske

“Over the past several months as interim CEO, Michael has proven to be an exceptional leader for Kohl’s—progressively improving results, driving short and long-term strategy, and positively impacting cultural change,” said Schlifske.

For example, Kohl’s second-quarter earnings came in better than expected and the company raised its guidance for the fiscal year.

Still, Bender still has plenty of work to do.

Like many midtier merchants, the rise of e-commerce has shifted dollars away from stores. The company has posted 14 consecutive quarters of declines in same-store sales as of its second fiscal quarter.

High management turnover has exacerbated Kohl’s problems. Since 2018, Kohl’s has had four chief executives, including Bender, each with a different vision and turnaround plan. It isn’t clear yet what Bender’s plan will be.

Kohl’s reports third-quarter results on Tuesday. Analysts expect the company will post an adjusted loss of 16 cents a share on $3.3 billion in revenue. Same-store sales are projected to drop by 3.7% from a year ago.

Kohl’s stock is up 13% this year, driven in part by renewed interest from retail traders. Over the past 12 months, shares are off about 14%. Shares were up 1% on Monday.

Write to Sabrina Escobar at sabrina.escobar@barrons.com