Kohl's Corp. names interim leader Tom Kingsbury as its new CEO
After serving as the interim CEO since December, Kohl's Corp. has officially named Tom Kingsbury the new CEO of the company.
The announcement on Thursday comes exactly two months after Kingsbury entered the role as the interim executive succeeding Michelle Gass, who left the company.
“This is a pivotal time for Kohl’s, and I am excited and energized to work with our talented team to elevate our performance and create value,” Kingsbury said. “During the last few months, I have seen the passion and dedication of the Kohl’s team and the unique value we can bring to our customers nationwide. I look forward to partnering with the Board and leadership team to build on our strengths and deliver on our strategy for our shareholders and other stakeholders.”
Kohl's board chairman Peter Boneparth said Kingsbury has an "exceptional track record growing retail businesses and his deep knowledge of Kohl’s makes him the right choice for Kohl’s next CEO."
"Since joining the Board, Tom has added valuable insight and perspective, and as Interim CEO, he has demonstrated strong leadership and made a meaningful and positive impact on the organization,” Boneparth said. “The board has the full confidence in Tom’s ability to drive the business forward, focusing on accelerating sales and profitability, and we look forward to our continued work together.”
Kingsbury served as CEO of Burlington Stores, Inc., from 2008 to 2019; he also served on the Burlington Stores board of directors from 2008 to 2020, including as chairman from 2014 to 2019 and as executive chairman from 2019 to 2020.
Kingsbury was appointed to the Kohl's board two years ago when the company made a deal with a group of activist investors and subsequently nominated him to the board.
Also on Thursday, Kohl's announced a cooperation agreement with Macellum Advisors GP, LLC, a subsidiary of Macellum Capital Management, which tried to take over the board in a proxy fight last year. The agreement with Macellum, which owns roughly 5% of the company, pauses any plans for another proxy fight for this year.
In a statement, Jonathan Duskin, managing partner for Macellum, said, “We are very excited about the future of Kohl’s under the leadership of Tom and have the utmost confidence in his ability to maximize shareholder value.”
On Friday, Kohl's announced it would announce 2022 fourth quarter earnings on March 1.
The news of the new CEO and agreement was welcomed by traders on Wall Street and some analysists seeing Kingsbury's appointment as a way to please both the activists and put an experienced executive at the helm of the company.
David Swartz, analyst who monitors Kohl's for Morningstar, published a report after the announcement saying choosing Kingsbury isn't solely to please an "antagonist shareholder, we believe he is well-qualified, with extensive retail experience that includes more than a decade as narrow-moat Burlington’s CEO. Thus, in our view, he was both a logical and a practical choice."
While Kohl's has prevented a proxy fight with Macellum, for now. Swartz said there are other problems the company must face.
"For one, Macellum and other activist holders have pushed for a sale of the company, but the board (includingKingsbury) has shown little interest in pursuing this path," Swartz states. "Moreover, even if the activists no longer want a sale, Kohl’s has not pursued their other demands, including sizable real estate monetization and share repurchases. Indeed, Kohl’s chairman Peter Boneparth made it clear in November that the company will not veer away from its current plan under a new CEO. Apart from those unknowns, we lack even clarity on current operations, as Kohl’s, unlike no-moat Macy’s and other some others, has yet to provide any information on its holiday sales."
The department store chain based in Menomonee Falls has more than 1,110 stores in 49 states.
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This article originally appeared on Milwaukee Journal Sentinel: Kohl's Corp. names Kingsbury new CEO
