Kohl’s beats expectations in wake of dramatic CEO firing

Kohl’s Corp. reported better-than-expected comparable sales, a positive sign amid a tumultuous run of events for the retailer.

Comparable sales fell 3.9% in the three months ended May 3, slightly better than what analysts were anticipating. The company forecast earlier this month that comparable sales would fall 4% to 4.3%. The company reported revenue of $3 billion for the quarter, roughly in line with analysts’ expectations.

The company also affirmed its full-year outlook.

The stock rose 4.3% at 7:28 a.m in premarket trading in New York. Kohl’s shares have fallen 42% this year through Wednesday’s close.

The retailer’s strategy includes expanding petite sizes to all of its stores, improving its women’s offerings and running promotions for more brands.

Kohl’s reported earnings less than a month after its former CEO, Ashley Buchanan, was ousted for directing millions of dollars of business to a person with whom he had a personal relationship. Buchanan had been at Kohl’s for less than four months when he was fired.

The dramatic exit complicates the retailer’s efforts to turn around its business, which has posted revenue declines for three years amid an increasingly competitive retail landscape.

Now, Kohl’s is looking for a new leader, an appointment that will mark Kohl’s fourth top executive since 2018. After Buchanan’s exit, former Walmart executive Michael Bender, who was serving as board chair at Kohl’s, was tapped to lead the company on an interim basis.

“The actions we are taking are starting to make progress with early signs of a positive impact,” Bender said in a statement Thursday.