Kohl's Eliminates Three Senior Roles
February 13 2016 - 3:02AM
Dow Jones News
(FROM THE WALL STREET JOURNAL 2/13/16)
By Suzanne Kapner
Kohl's Corp. has eliminated three senior leadership positions at
a time when the department-store chain is battling sluggish sales
and a depressed share price.
The three executives holding the positions -- chief digital
officer, senior vice president of store environment and
development, and senior vice president of communications and public
relations -- were informed of the decision on Thursday.
A Kohl's spokeswoman said the moves were part of a
reorganization designed to make the company more agile.
The reorganization comes as Kohl's board of directors is
weighing options that could include a partial or full sale of the
business to a private-equity firm, people familiar with the
conversations have said. These people cautioned, however, that the
discussions were preliminary and Kohl's board may choose to take no
action.
Like other department stores, Kohl's has struggled with sluggish
growth losing out to online rivals and fast-fashion chains. In
recent years, overall sales growth has been flat while profits have
been declining. Sales at stores open at least a year have fallen
for its financial years that ended in early 2015 and 2014. The
company reports full-year earnings for its recently completed
financial year later this month.
The retailer, which is based in Menomonee Falls, Wis., has laid
out a plan to increase sales to $21 billion by 2017, up from $19
billion in the fiscal year that ended in January 2015. But sales
growth in the past year has continued to be weak, edging up 1% to
$12.8 billion in the nine months through October.
In the latest quarter, results came in below the company's
plans, prompting Kohl's this month to lower its earnings guidance
for the year.
Shares of the company have declined roughly 40% over 12 months,
which could make it a target for activist investors. On Friday, the
stock closed up 2.8% at $40.81 in New York.
(END) Dow Jones Newswires
February 13, 2016 02:47 ET (07:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Kohls (NYSE:KSS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Kohls (NYSE:KSS)
Historical Stock Chart
From Sep 2023 to Sep 2024