Kohl’s Corporation (NYSE: KSS) is trading up this morning after the retailer said its Chief Executive Michelle Gass will exit the role on December 2nd.
Gass to join Levi’s as its President
Kohl’s has been under pressure particularly from the likes of Ancora Holdings (activist investor) to replace Gass as the top boss (read more) ever since she withdrew plans of selling the department store chain to Franchise Group in June of 2022.
Nonetheless, it’s not that she’s being ousted. Gass is leaving Kohl’s for a new opportunity at Levi Strauss & Co (NYSE: LEVI) – first as its President and eventually as its Chief Executive. She’d be replacing CEO Chip Bergh within the next eighteen months, confirmed the world-famous denim jeans brand.
At Kohl’s, Tom Kingsbury will serve as the interim CEO following Gass’ departure. He’s currently with the retail chain as a director.
Versus its year-to-date high, Kohl’s stock is down more than 50% at writing.
Jim Cramer reacts to the news on CNBC
Also on Tuesday, Kohl’s reported its preliminary results for the fiscal third quarter, signalling a 7.2% year-on-year hit to net sales. Reacting to the news on CNBC’s “Squawk Box”, Jim Cramer said:
This is a really big change. I love Tom Kingsbury. I know he’s interim, but when he was at Burlington, he did such an amazing job. He may be the person that can turn Kohl’s around. I think it’s very positive.
Kohl’s is scheduled to report it full quarterly update on November 17th.
Those considering buying Kohl’s stock on this news should also factor in the consensus “hold” rating that Wall Street has on the Wisconsin-headquartered company.