Kohl’s Traders Just Got The CEO They Wanted — And the Stock’s Weekly Breakout Says It All

• The stock soared by more than 260% after Bender was named interim CEO, indicating a resurgence in investor confidence in the chain.
• Telsey Advisory Group’s Dana Telsey said that after several years of turbulent results and management turnover, CEO Michael Bender had shown the “necessary leadership and vision” during his six months as interim.
• In May, Kohl’s Board terminated Ashley Buchanan after an investigation found that he violated company policies by directing the company to engage in vendor transactions involving undisclosed conflicts of interest.

When Kohl’s named Michael Bender as its interim CEO in May, following Ashley Buchanan’s ouster, he was left with a company in the midst of a turnaround after years of struggling to spur demand and sales growth. But investors seemed to shrug such concerns off and have bet big on him since then.

Last week, following Bender’s appointment as the full-time CEO of Kohl’s, the department store chain’s shares surged nearly 57%, making the (holiday-shortened) week the best one for the stock this year.

The stock soared by more than 260% after Bender was named interim CEO, signaling a strong resurgence in investor confidence in the chain's leadership choice.

Bender’s career includes titles at retail behemoth Walmart and soda giant PepsiCo. He held various executive management positions at Walmart, including Chief Operating Officer of Global eCommerce and Executive Vice President and President of the Walmart West business unit.

He began his career at PepsiCo, where he spent more than a decade in sales, finance, and operational roles. Bender is currently also on Kohl's Board, where he has been a Director since 2019, including as Board Chair from May 2024 until he was appointed interim CEO in May.

There has been a bit of a renewed “meme stock” frenzy this year, which enveloped Kohl’s, whose stock rallied in late July with no clear catalyst amid heavy online chatter, highlighting the strong retail interest in the stock.

Buchanan's Ouster

In May, Kohl's Board decided to terminate Buchanan after an investigation found that Buchanan violated company policies by directing the company to engage in vendor transactions involving undisclosed conflicts of interest.

In the company filing, Kohl's stated that Buchanan directed the company to conduct business with a vendor founded by an individual with whom Buchanan has a personal relationship on "highly unusual terms" favorable to the vendor.

Buchanan also caused Kohl's to enter into a multi-million-dollar consulting agreement in which the same individual was part of the consulting team. It was found that in neither case did he disclose this relationship as required under the company's "Code of Ethics." He had served as the company's CEO for just over 100 days.

Analysts View Bender As A Fine Leader

After the previous CEO's termination, Wall Street sees Bender as someone who can guide Kohl's back to its former glory, maybe not immediately, but in the long term.

Telsey Advisory Group's Dana Telsey said that after several years of turbulent results and management turnover, Bender had shown the "necessary leadership and vision" during his six months as interim, leading to his appointment as the company's permanent CEO.

"With a permanent leader now in place, we do not foresee a significant shift in the company's strategy as it continues to plot along in its recovery efforts, focusing on delivering an improved product mix," Telsey said.

Gordon Haskett noted that under Bender, the company has quickly course-corrected over the past couple of quarters. The firm said it believes the move to establish Kohl's as a leader in value and quality by emphasizing its exclusive brands will be "well embraced given today's highly uncertain competitive backdrop."

Kohl's raised its annual profit forecast last week after the CEO appointment and forecast a smaller drop in full-year comparable sales, benefiting from its efforts to introduce a fresh product lineup.

Goldman Sachs analyst Brooke Roach said that the guidance raise signaled an early traction in its 2025 transformation initiatives. Roach, however, said that even though momentum is building under new leadership, comparables remain negative and profitability has softened, so sustained improvement will be needed before a more upbeat view becomes warranted.

What Is Retail Thinking About Kohl's?

Retail sentiment on Kohl's remained unchanged in the 'extremely bullish' territory, with message volumes at 'extremely high' levels, according to data from Stocktwits.

Kohl’s saw a 56% jump in watchers on Stocktwits over the past year, indicating significant growth in retail-trader interest.

Shares of Kohl's have gained over 75% this year and jumped nearly 60% in the last 12 months, strongly outpacing the benchmark S&P 500 and Nasdaq indices.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: AI Is Quietly Rewriting Black Friday — More Shoppers Are Now Skipping Store Visits For Online Deals

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