Kohl’s Reveals Whether It Will Stay In Business Next Year
Despite a dismal performance outlook, Kohl's isn't giving up and is planning on staying in business for 2023 as it looks to fill its open CEO role.
Kohl’s has been facing severe financial trouble for the last several years. The company made plans for this holiday season that they hoped would project them onto a path of success and into the new year. Dreams have not come to fruition, revenue has decreased, and more changes are coming to the retailer, but they will continue to forge ahead.
Earlier this year, Kohl’s was entertaining buyout offers but ultimately decided to continue forward in business. The company previously made new partnership deals, launched several new collections, revamped its rewards system, and concocted a holiday plan that they hoped would project them into 2023 with margins of profit.
The company brought in women-owned brands and unique gender-neutral collections. Additionally, the Kohl’s launched a clothing line specifically designed for people with disabilities. The retail company has been doing everything it can and following through with plans that were made with success in mind.
This past Thursday, Kohl’s pulled revenue reports and learned that earnings were down by nearly 10%. Sales were expected to be much higher in the months of October and early November, but that is not the case. This unexpected revenue is not the only unexpected twist in the Kohl’s plot.
The CEO, Michelle Gass, will be stepping down from her position as CEO at Kohl’s and moving on to be the CEO in waiting at Levi Strauss. The company has announced that Tom Kingsbury will temporarily fill the spot of CEO. Kingsbury is currently a member of the board for Kohl’s.
Kohl’s is looking to fill the permanent CEO position with someone who would bring the plans and current strategy to the finish line and beyond. The company is trying to push sales and earnings and is looking for a leader to step up to the plate. The company does not want to make significant changes to the plans for the company and does not want someone to come in and push to make changes.
Investors have raised concerns, but Kohl’s is determined to continue forward and continue working towards success. Plans for Kohl’s include store redesign, new collections and brands to be added, and more. The retailer will also continue its successful partnership with Sephora.
Kohl’s has reported great success with its partnership with Sephora and wants to continue this success. The beauty industry is a proven bet in tough economic times, and this is a partnership worth keeping. Kohl’s is continuing to defy the odds and fight hard for their desired outcome.
In December, Kohl’s plans to pay down debt on its revolving loan as sales for the holidays come to a close. Additionally, the company has solid plans to pay down bonds totaling around $275 million. The company is working to keep its leverage down and its investment grade rating.
Despite Gass stepping down from CEO of Kohl’s, major criticism from investors, high inflation, and an overall volatile retail market, Kohl’s is not giving up or backing down in the slightest. The company will continue moving forward. Whatever the company will face in the future will only make them work harder as they strive for success.