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Shares of Kohls Corporation (NYSE: KSS) were up nearly 10% on Thursday after the company fired CEO Ashley Buchanan after just four months on the job. It appointed board chair Michael Bender as interim chief executive officer effective immediately. Buchanan’s termination comes after an investigation by the Kohl’s board found he violated the companys code of conduct twice, and was involved in undisclosed conflicts of interest stemming from a personal relationship with a vendor, according to The Wall Street Journal. “Buchanan’s termination is unrelated to the company’s performance, financial reporting, results of operations, and did not involve any other company personnel,” Kohl’s explained in a statement. The former CEO had a total compensation package worth more than $20 million, according to USA Today. Bender and other company executives held an all-hands meeting on Thursday to address the changes and reassure staff, the WSJ reported. Bender’s appointment as interim CEO makes him the fourth CEO in three years to head the struggling retailer, which continues to face declining sales. In connection with the leadership announcement on Thursday, Kohls provided preliminary expectations for its first-quarter financial results, forecasting sales would likely be down around 4%. It will report those earnings at the end of the month, on May 29, at 9 a.m. Like many retailers, Kohl’s has been struggling with declining sales and decreasing foot traffic, as consumers spend less money due to the skyrocketing cost of living, and spend less time shopping in stores versus online.
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E-Commerce
McDonalds released its earnings report for the first quarter of 2025 early this morning. According to the report, U.S. comparable sales decreased by 3.6% from the previous year, primarily driven by reduced guest counts. This is the fast food giant’s largest U.S. sales drop since the second quarter of 2020, when U.S. sales plunged 8.7% during the height of the COVID-19 pandemic. ‘Grappling with uncertainty’ The fast food retailer reported that U.S. store revenue dipped to $5.96 billion, below a Bloomberg consensus estimate of $6.12 billion cited by Yahoo Finance. In the earnings report, McDonald’s CEO Chris Kempczinski noted that “Consumers today are grappling with uncertainty.” Chicago-based McDonald’s said adjusted earnings per share were $2.67. The earnings report also indicated that global sales fell 1.0%, with the most notable decline in sales in the U.K. McDonald’s shares (NYSE: MCD) were down 1.53% in early-afternoon trading on Thursday following the report. The stock is up 7.71% year to date. Fast food embracing value meals amid consumer caution Consumers appear to be tightening their spending due to economic uncertainty, likely not helped by President Trump’s broad tariffs and erratic trade policies, which have made people anxiousness about increased costs and a possible recession. In this morning’s earnings call, Kempczinski warned, were not immune to the volatility in the industry or the pressures that our consumers are facing. McDonald’s menu prices have notably risen along with inflation in recent years, leading to customer backlash. More recently, however, the fast food retailer has attempted to increase customer traffic by releasing new menu items and promoting value-focused deals. Recent discount deals include the McValue menu, which features buy one, add one for $1 items, and $5 Meal Deals. Other fast-food chains have made similar moves to boost sales. Meanwhile, the burger giant plans to continue to offer meal deals like this, according to McDonald’s CFO Ian Borden. “While we may adjust our current McValue offerings over time,” Borden said on the earnings call, “for the remainder of 2025, we’ll continue to include everyday value meal deals starting at $5 given how the current $5 meal deal in particular has resonated with customers.”
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E-Commerce
Kohls has terminated its new CEO Ashley Buchanan after an investigation determined that he directed the retailer to engage in vendor transactions that involved undisclosed conflicts of interest. Kohls named Chairman Michael Bender as interim CEO, effective immediately. In connection with the appointment, Bender will step down as a member of the boards audit, compensation and nominating and environmental, social and governance committee, according to the retailer’s regulatory filing. The news comes nearly four months after Buchanan, who had been previously the CEO of arts and crafts chain Michaels, took over the job on January 15. Buchanans appointment marks the third CEO for Kohls in three years as the department store struggles to reverse sluggish sales. Kohl’s said Thursday that Buchanans firing is unrelated to its performance, financial reporting, results of operations and did not involve any of its other employees. Kohls will conduct a search for a permanent CEO and said it will name a new chair in due course. The company couldn’t be immediately be reached for comment. Buchanan didn’t immediately return a message sent to his LinkedIn account. According to the Securities and Exchange Commission filing, Buchanan’s termination follows a probe conducted by outside counsel and overseen by the board’s audit committee. It found Buchanan had directed that Kohl’s conduct business with a vendor founded by an individual with whom Buchanan has a personal relationship on highly unusual terms favorable to the vendor and that he also caused Kohl’s to enter into a multimillion-dollar consulting agreement with the same individual who was a part of the consulting team. It also found that in neither case did Buchanan disclose this relationship as required under Kohl’s code of ethics. In connection with his termination and in accordance with the terms of his equity award agreements, Buchanan will forfeit all equity awards he received from the company, including the recruitment awards made as of January 15, according to the filing. Buchanan will also be required to reimburse Kohls for a pro rata portion of his signing incentive in the amount of $2.5 million, according to the documents. As a result of Buchanans termination, the board has determined to withdraw his nomination for election as a director of the company at the company’s annual shareholders’ meeting to be held on May 14. Buchanan had succeeded Tom Kingsbury, who stayed on as an adviser and is retaining his position on Kohls board until his retirement next month. Kingsbury served as Kohls interim CEO in December 2022 and was named its permanent leader in February 2023. The firing comes at a time when Kohl’s, which operates 1,600 stores across the country, is wrestling with sluggish sales. Its middle-income shoppers have pulled back on discretionary spending in the face of still-high prices for necessities. It’s also faced stiff competition from Walmart and Amazon, which have been improving their fashion offerings at affordable prices. And like other retailers, it is confronting uncertainty surrounding President Donald Trump‘s expansive tariffs. On Thursday, Kohl’s offered a preliminary look at sales and profits for the current quarter that showed continued weakness, though the expected results are on track to beat Wall Street estimates. It said that it expects to report a decline in comparable salesthose coming from established physical stores and online channelsin the range of 4.3% to 4%, and a loss of 24 cents to 20 cents per share for the fiscal first quarter. Analysts expected earnings per share loss of 54 cents and a drop in comparable sales of 6.4%, according to FactSet. It expects to report final fiscal first-quarter results on May 29. Shares of the company, based in Menomonee Falls, Wisconsin, rose nearly 9% in late morning trading. Michelle Chapman and Anne D’Innocenzio, AP business writers
Category:
E-Commerce
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