Kohl’s is under heightened scrutiny as it prepares to release its quarterly earnings, with analysts predicting the retailer may withdraw its full-year guidance entirely. The chain finds itself in the crosshairs of investor concern following the sudden dismissal of CEO Ashley Buchanan earlier this month—a leadership shakeup that compounds the strain already caused by tariff-related uncertainty and slumping sales.

Buchanan, who had only taken the reins in January, was terminated for directing business to a vendor with whom he had a personal connection, sparking serious concerns about governance. His ouster adds to the instability at a time when Kohl’s is already struggling to regain momentum in the face of soft apparel demand and the ripple effects of President Donald Trump’s import tariffs.

"Kohl’s is quite likely to withdraw its annual outlook when it reports," said Jane Hali, head of the research firm Jane Hali & Associates. The disruption in leadership comes as other major retailers, including Macy’s, have already scaled back or abandoned their forecasts due to rising costs and shifting consumer behavior driven by global trade tensions.

Now, attention turns to interim CEO Michael Bender, a longtime company executive, who is expected to outline immediate steps to halt market share erosion and shore up profitability. Analysts like Fitch’s David Silverman point out that Buchanan, in his short tenure, had yet to introduce a comprehensive turnaround plan—raising concerns that the company’s path forward remains undefined.

While a brief pause in the U.S.-China trade war in May slightly improved consumer sentiment, the broader mood remains fragile. Shoppers are still wary of the inflationary effects of tariffs, especially at stores like Kohl’s, which sources the majority of its inventory from overseas and operates solely within the U.S., giving it little room to maneuver.

Compounding matters, Kohl’s had previously forecast a first-quarter comparable sales decline between 4% and 4.3%, and a per-share loss ranging from 20 to 24 cents—figures that reflect deepening challenges. As Thursday’s earnings announcement looms, investors and analysts alike will be watching closely to see whether Bender can steady the ship or whether further turbulence lies ahead for the embattled retailer.
Tools
Cha