Kohl’s Corporation ( NYSE: KSS ) is trading up this morning after the retailer said its Chief Executive Michelle Gass will exit the role on December 2 nd .
Gass to join Levi’s as its President
Kohl’s has been under pressure particularly from the likes of Ancora Holdings (activist investor) to replace Gass as the top boss ( read more ) ever since she withdrew plans of selling the department store chain to Franchise Group in June of 2022.
Nonetheless, it’s not that she’s being ousted. Gass is leaving Kohl’s for a new opportunity at Levi Strauss & Co ( NYSE: LEVI ) – first as its President and eventually as its Chief Executive. She’d be replacing CEO Chip Bergh within the next eighteen months, confirmed the world-famous denim jeans brand.
At Kohl’s, Tom Kingsbury will serve as the interim CEO following Gass’ departure. He’s currently with the retail chain as a director.
Versus its year-to-date high, Kohl’s stock is down more than 50% at writing.
Jim Cramer reacts to the news on CNBC
Also on Tuesday, Kohl’s reported its preliminary results for the fiscal third quarter, signalling a 7.2% year-on-year hit to net sales. Reacting to the news on CNBC’s “Squawk Box” , Jim Cramer said:
This is a really big change. I love Tom Kingsbury. I know he’s interim, but when he was at Burlington, he did such an amazing job. He may be the person that can turn Kohl’s around. I think it’s very positive.
Kohl’s is scheduled to report it full quarterly update on November 17 th .
Those considering buying Kohl’s stock on this news should also factor in the consensus “hold” rating that Wall Street has on the Wisconsin-headquartered company.
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