Kohl's shares tank 20% as CEO abruptly quits before crucial Black Friday kickoff

Core Viewpoint - Kohl's shares dropped over 20% following a significant decline in sales and the abrupt resignation of its CEO just days before Black Friday, raising concerns about the company's future performance [1][3]. Sales Performance - Kohl's reported a same-store sales decline of 9.3%, marking the eleventh consecutive quarterly decline [1][2]. - The company has lowered its annual sales forecast for the third consecutive quarter, now expecting a full-year net sales decline between 7% and 8%, compared to a previous forecast of a 4% to 6% decline [2]. Leadership Changes - CEO Tom Kingsbury announced his resignation after less than two years in the role, which is seen as a negative signal for investor confidence [3][4]. - Ashley Buchanan, former CEO of Michaels and a Walmart executive, has been appointed to take over the role in January [4]. Customer Trends - Customer visits to Kohl's decreased by an average of 6.2% in the third quarter, worsening from a 3% decline in the previous quarter [5]. - The shift in consumer behavior is evident as cash-strapped customers are increasingly turning to discount retailers like Walmart, impacting Kohl's performance [7][8]. Market Context - Kohl's shares have fallen 47.9% year-to-date, while Macy's shares have dropped 18.7% in the same period [9]. - The competitive landscape is challenging, with consumers favoring discount chains amid inflation and price hikes, which poses risks for traditional department stores like Kohl's and Macy's [8][9].