Kohl's Bets on Bender: A Steady Hand for a Retail Turnaround

MENOMONEE FALLS, Wis. – November 24, 2025

In a move that swaps uncertainty for stability, Kohl’s Corporation (NYSE: KSS) announced today it has removed the “interim” tag from Michael J. Bender’s title, unanimously appointing him as the company’s permanent Chief Executive Officer. The decision, effective immediately, comes just one day before the retailer is set to report its crucial third-quarter earnings, signaling a clear vote of confidence from a board eager to project strength and strategic continuity to a watchful market.

This isn't merely a C-suite promotion; it's a calculated capital decision. For investors and analysts tracking the beleaguered retail sector, the appointment of Bender—a seasoned executive with a deep background in operations and e-commerce—is the most significant indicator yet of Kohl's intended path forward. After a period of leadership turbulence that saw the abrupt departure of his predecessor just six months ago, Bender’s confirmation suggests the company is doubling down on a strategy of operational discipline and pragmatic execution over radical, high-risk transformation.

From Interim to Indispensable

Bender’s six-month tenure as interim CEO served as a live-fire audition, and by all public metrics, he passed with flying colors. The market's positive sentiment has been building since the company's second-quarter results were released in late August. While top-line sales remained a challenge, declining 5.1%, the story behind the numbers revealed Bender's immediate impact. Kohl’s posted an adjusted EPS of $0.56, dramatically outperforming analyst expectations of just $0.30.

The real story for investors, however, was in the operational improvements. Gross margin expanded, and perhaps most critically, inventory was reduced by 5% year-over-year. This demonstrated a firm grip on the operational levers that have often plagued department store retailers—avoiding the deep, margin-crushing discounts needed to clear excess stock. The market reacted favorably, with Kohl’s stock surging in the wake of the Q2 report, a sign that investors were rewarding the nascent signs of a disciplined turnaround. The company even felt confident enough to raise its full-year outlook.

The board’s unanimous decision, following what it called a "comprehensive external search," underscores that Bender's performance was no fluke. He wasn't just a placeholder; he became the benchmark. Board Chair John Schlifske's comment on Bender "progressively improving results" and "positively impacting cultural change" points to a leader who has quickly stabilized an organization rocked by the sudden termination of former CEO Ashley Buchanan in May over undisclosed conflicts of interest. By choosing the known quantity who delivered tangible results, the board is signaling a preference for execution over experimentation.

A Veteran Hand for a Turbulent Sector

Looking at Bender’s extensive resume, his appointment appears to be a strategic match for the specific challenges Kohl’s faces. His time at Walmart, particularly as Chief Operating Officer of Global eCommerce, provides him with invaluable experience in the very arena where Kohl's must win: omnichannel retail. As consumers continue to blend physical and digital shopping, a leader who understands the complex logistics, inventory management, and customer experience of a massive e-commerce operation is not just a benefit, but a necessity.

His experience isn't limited to the digital realm. His tenure as President of Walmart’s West business unit, a multi-billion-dollar operation, speaks to his ability to manage vast, complex physical retail footprints. This dual expertise is crucial for Kohl’s, which operates over 1,100 stores that must integrate seamlessly with its digital platforms. Furthermore, his background includes leadership roles across the consumer goods landscape, from PepsiCo to Victoria’s Secret, giving him a broad perspective on brand management, supply chains, and consumer behavior.

This diverse experience provides a toolkit well-suited for a retailer navigating a tricky economic environment. With many middle-income consumers feeling squeezed, Kohl’s value proposition is more relevant than ever. Bender's focus on operational efficiency, honed at giants like Walmart and PepsiCo, is precisely what is needed to ensure that value proposition can be delivered profitably.

Strategy in Focus: Curation, Value, and Sephora

Under Bender's interim leadership, Kohl’s strategy has crystallized around three core pillars. First is a renewed focus on a curated assortment, leaning into the strength of its proprietary brands like Lauren Conrad and FLX, which have been key drivers of the recent margin improvements. By controlling its own brands, Kohl's can better manage quality, design, and profitability, differentiating itself from competitors who are often just resellers.

Second is the deliberate re-establishment of Kohl’s as a leader in value. This goes beyond simple price points and includes a more strategic approach to promotions and couponing, a hallmark of the Kohl’s brand that had been de-emphasized in recent years. Re-engaging its loyal Kohl's Card customers, a segment that showed improvement in Q2, is central to this effort.

Finally, the powerhouse partnership with Sephora remains a critical growth engine. The "store-within-a-store" concept has proven successful at driving new, often younger, customers into Kohl's locations and encouraging cross-shopping. Bender’s task will be to continue optimizing this partnership, ensuring the halo effect from the beauty category lifts performance across the entire store.

The Road Ahead: A Critical Q3 and Beyond

The timing of this announcement is anything but coincidental. By cementing Bender’s leadership the day before its Q3 earnings call, the Kohl’s board is sending a powerful message of stability to Wall Street. The focus now shifts to tomorrow's results and, more importantly, the outlook for the all-important holiday season.

Investors will be listening intently for signs that the positive trends from Q2 have continued. Key metrics to watch will be comparable sales—to see if the decline is decelerating further—and gross margin performance, which will indicate if Bender's inventory discipline is holding firm. Any commentary on early holiday shopping trends and the company’s preparedness will be scrutinized.

While the optimism is palpable, the challenges remain formidable. The company is still working to break a long-standing trend of year-over-year revenue declines. The core Kohl's shopper remains under economic pressure, and competition from off-price retailers and online giants is relentless. Bender’s permanent appointment is not a declaration of victory, but rather the formal start of a long and arduous campaign. He has proven he can stabilize the ship and chart a new course; now he must prove he can navigate it back to consistent growth.