Good morning. Kohl’s is gaining momentum in its turnaround after a period of CEO turnover, while longtime finance chief Jill Timm has been a mainstay.
The retailer reported on Wednesday Q2 2025 adjusted earnings per share (EPS) of $0.56, beating the $0.30 estimate, driven by cost controls and margin improvements, and sending shares up over 20% despite a 5.1% drop in net sales. Proprietary brands and the Sephora partnership showed positive growth.
Following years of weak sales, the better-than-expected earnings come after a tumultuous period, my Fortune colleague Sydney Lake writes. CEO Ashley Buchanan was fired in May—just over 100 days into the role—after an investigation found he directed the company to do business with a vendor who was his romantic partner, under highly unusual terms favorable to the vendor. Former board chair Michael Bender is now serving as interim CEO while the company searches for a permanent replacement.
When Buchanan joined the company in January as chief executive, he succeeded Tom Kingsbury, who had followed Michelle Gass after she stepped down as CEO in December 2022 to become chief executive at Levi’s.
