What: Kohl's reports better-than-expected Q1 results with a 3.9% sales decline, while searching for its fourth CEO since 2018 following Ashley Buchanan's termination over improper business dealings.

Why it is important: The results demonstrate Kohl's resilience amid leadership challenges, while highlighting the broader issues of governance and stability facing department stores as they navigate transformation efforts.

Kohl's Corporation has reported first-quarter results that exceeded expectations, with comparable sales declining 3.9%, outperforming earlier forecasts of a 4% to 4.3% drop. The company achieved revenue of USD 3 billion and maintained its full-year outlook despite significant leadership upheaval. The recent termination of CEO Ashley Buchanan, who served less than four months, came after discoveries that he had directed millions in business to a person with whom he had a personal relationship. Former Walmart executive and board chair Michael Bender has stepped in as interim CEO, marking the company's fourth chief executive since 2018. While the results show operational resilience, with the stock rising 2.8%, Kohl's continues to face challenges, including high short interest at 53% of its free float and a 42% stock decline this year. The company emphasises that its turnaround strategy remains unchanged, focusing on expanding product offerings and improving customer experience.

IADS Notes: Kohl's leadership crisis comes amid broader transformation efforts in the department store sector. In March 2024 , the company's Sephora partnership demonstrated significant success, generating USD 1.4 billion in sales and attracting new, younger customers. However, as noted in September 2024 , the department store sector's market share has plummeted from 14% in 1993 to less than 3% today, highlighting the challenges facing traditional retailers. The company's ability to maintain performance despite leadership turnover reflects the strength of strategic initiatives implemented since 2024 , including store optimisation and brand partnerships, though the search for stable leadership remains crucial for long-term success.

Kohl’s posts better-than-expected 2025 Q1 sales