Kohl’s (KSS) board of directors has ousted CEO Ashley Buchanan for cause, citing violations of company policies related to undisclosed conflicts of interest in vendor relationships.
According to Bloomberg, trading in Kohl’s shares was temporarily halted Thursday morning following the announcement. Shares later rose over 9%, signaling investor approval of the board’s decisive action.
As of 11:12:05 AM EDT. Market Open.
An investigation found Buchanan violated company policies by directing vendor transactions involving undisclosed conflicts of interest. The board emphasized that the termination was unrelated to company performance or financial reporting. As a result, Buchanan has also been removed from the board and withdrawn as a nominee for reelection at the 2025 shareholders meeting.
Buchanan, who assumed the CEO role in January, became the retailer’s third CEO in three years. He previously led the privately held Michael’s craft chain and held senior roles at Walmart (WMT) and Sam’s Club.
Buchanan’s appointment came with a hefty price tag: a compensation package totaling approximately $20 million, more than double the $9 million received by his predecessor, Tom Kingsbury.
The shakeup at Kohl’s comes as many retail chains have been under pressure, as consumers feel squeezed by persistent inflation and high interest rates. Now, President Trump’s tariffs may threaten prices, shopper behavior, and margin pressure, adding another layer of uncertainty to the industry trying to turn things around.
Read more: What Trump’s tariffs mean for the economy and your wallet
Kohl’s has struggled to land a sustained recovery. In March, the company reported a 9.4% year-over-year decline in fourth quarter revenue, with same-store sales falling 6.7%. Adjusted earnings per share dropped to $0.95, a steep drop from $1.67 in the same period a year earlier.
The company’s 2025 outlook offered little reassurance. Same-store sales are expected to decline between 4% and 6%, greater than the 0.55% drop analysts had forecast.
During his brief tenure, Buchanan moved quickly to make changes at the retailer, announcing plans to cut 10% of corporate staff and close 27 stores by April. Despite those efforts, analysts remained skeptical, and shares decreased by nearly 50% year to date.
Buchanan was tasked with undoing many of the retailer’s missteps, including moving away from private-label brands. He also planned to refocus on key categories such as fine jewelry, petite apparel, intimates, and home decor while trying to strengthen the retailer’s growth areas through its partnerships with Sephora.
