Kohl’s saw its stock plunged by 17% on Tuesday after the department store chain announced a CEO change and reported quarterly earnings that missed the estimates of analysts.
The company’s current CEO, Tom Kingsbury, will step down on January 15, with Ashley Buchanan, the CEO of arts and crafts retailer Michaels, taking over. Kingsbury will remain in an advisory role and will hold a board seat before he retires in May.
Kohl’s said that it had $0.20 in adjusted earnings per share for the past quarter, which came short of the $0.31 estimated by analysts. The company is also disappointed at $3.51 billion. The figure represents an 8.8% year-over-year decline and misses the analysts’ expectations of $3.65 billion.
Additionally, the retailer said its comparable sales saw a 9.3% year-over-year dip.
Kohl’s now also expects its full-year financial results to come below the previous projections. It now projects between $1.20 and $1.50 in earnings per share for fiscal 2024 compared to previous guidance of $1.75 to $2.25 and Wall Street’s expectations of $1.85. Additionally, the company forecasts a 7% to 8% drop in sales instead of the previously projected 4% to 6%.
“We are approaching our financial outlook for the year more conservatively given the third quarter underperformance and our expectation for a highly competitive holiday season,” Kingsbury said in a statement.
After Tuesday’s slide, Kohl’s stock closed at $15.22 on Tuesday, being 45.72% down year-to-date.