Kohl’s Corporation has officially promoted Michael J. Bender from interim to permanent CEO, a move signaling confidence in his leadership during a difficult period for the retailer. This decision comes at a pivotal moment as Kohl’s attempts to stabilize amid a protracted sales slide and intensifying macroeconomic headwinds.

Leadership Amid Crisis

Bender, who assumed the interim CEO role in May 2025 following the ouster of Ashley Buchanan, brings more than three decades of experience in retail and consumer goods. His previous roles include senior executive positions at Walmart, L Brands, Eyemart Express, and PepsiCo. The Kohl’s board conducted a full external search and unanimously backed Bender’s promotion, citing his ability to improve results, execute strategy, and instill a more resilient corporate culture.

His elevation to permanent CEO comes after a turbulent leadership phase at the company. Buchanan was terminated for cause amid an internal probe that found undisclosed conflicts in vendor transactions.

Turning the Tide: Financial Signals Under Bender

During his interim tenure, Bender has guided Kohl’s through initial—but meaningful—financial progress. In Q1 of fiscal 2025, the company reported a net sales decline of 4.1% and comparable sales down 3.9%, yet achieved a 37 basis-point increase in gross margin. Although the quarter ended in a diluted net loss of $0.13 per share, the board expressed satisfaction with the early signs of operational leverage.

These improvements fed into the company’s broader turnaround strategy, prompting management to reaffirm its full-year outlook. Notably, Kohl’s lifted its 2025 adjusted EPS guidance to between $0.50 and $0.80 after a surprisingly strong Q2 performance.

Strategic Implications & Market Impacts

Bender’s permanent appointment conveys both continuity and urgency. As a seasoned insider who already understands Kohl’s operations and culture, he is well-positioned to accelerate initiatives around cost control, inventory management, and customer engagement. Under his leadership, Kohl’s has pushed ahead with strategic moves like optimizing its store portfolio, reducing excess inventory, and leaning into growth areas such as beauty via its Sephora partnership.

The market took note. Investor sentiment has improved, as evidenced by a 20% surge in Kohl’s stock following the company’s strong Q2 earnings, which signaled traction in its restructuring efforts. That rebound suggests increasing confidence both in Bender’s vision and the feasibility of the turnaround.

Risks and the Road Ahead

Despite the positive momentum, critical risks remain. Kohl’s still faces secular pressures common across mid-tier department stores: ongoing inflation, a soft labor market, and aggressive competition from e-commerce and fast-fashion players. The company’s ability to sustain margin gains depends heavily on executing its restructuring without alienating price-sensitive consumers.

Moreover, Bender must balance near-term profitability with long-term brand relevance—a tall order for a chain that has struggled with falling foot traffic and legacy cost structures. His dual role as CEO and director could also raise governance scrutiny among shareholders.

Looking ahead, investors and analysts will be watching Kohl’s Q3 earnings, the evolution of its cost-saving programs, and the sustainability of margin improvement. Bender’s appointment offers a clearer leadership path, but whether it translates into durable recovery will depend on execution across both stores and digital channels.