Kohl's reported adjusted Q2 earnings per share of $0.56, well above the consensus estimate of $0.30, which drove a roughly 20% jump in its stock price. Net sales fell 5.1% and comparable store sales declined 4.2%, reflecting ongoing consumer spending pressure. The earnings beat arrived amid a turbulent year that included CEO Ashley Buchanan's firing after about 100 days over a vendor-related policy violation and an outside-counsel investigation citing conflicts of interest. Michael Bender was named interim CEO. The company has also implemented layoffs and store closures over the past year.
Kohl's has had a challenging year marked by leadership turmoil and declining sales. But its second-quarter earnings report surprised analysts. In Q2, Kohl's posted adjusted earnings per share of $0.56, significantly exceeding the expected $0.30, leading to nearly a 20% surge in its stock price. Yet, net sales declined by 5.1% and comparable store sales fell 4.2%, reflecting ongoing consumer spending pressures.
The stronger-than-expected Q2 earnings report comes at the heels of a tumultuous year for Kohl's. After just 100 days on the job, CEO Ashley Buchanan was fired from his post for violating company policies by directing the company to conduct business with a vendor Buchanan had a personal relationship with, under "highly unusual terms" that were favorable to the vendor. Following an investigation conducted by outside counsel, Buchanan was let go for " undisclosed conflicts of interest." Michael Bender, who was on the company's board of directors since July 2019 and served as chair, was tapped to be interim CEO.
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