Between weak financial results and a failed sale to Franchise Group last month, it’s been a rough quarter for Kohl’s.
On top of existing issues, the retailer announced on Friday that its chief technology and supply chain officer Paul Gaffney would depart on August 1, according to an 8-K filing with the Securities and Exchange Commission. Siobhan McFeeney, who joined Kohl’s in 2020 and most recently served as the company’s EVP of technology, has been promoted the role of chief technology officer.
Gaffney served as CTO at Kohl’s for three years. The chief supply chain title was added to his role in 2021. The company’s EVP of supply chain will now report to CEO Michelle Gass.
The news marks the latest executive departure for Kohl’s in recent months. In May, Kohl’s announced that its chief merchandising officer Doug Howe and chief marketing officer Greg Revellehad were leaving the company.
The news also comes shortly after Kohl’s announced in early July that it had withdrawn from exclusive talks with Franchise Group, which owns the Vitamin Shoppe, to sell itself. The department store retailer entered into exclusive negotiations in early June to discuss a potential sale of its business. With the move, the Kohl’s board put the retailer back on the market and is continuing to look to maximize value for shareholders.
Franchise Group had reportedly lowered its initial $69 per share bid to $60 per share and then $53 per share.
The diminished bids came after Kohl’s reported disappointing results for Q1, with a decrease in net sales and comparable sales. Net income came in flat compared to the same period last year at $14 million in the first quarter of 2022. In the wake of the bid withdrawal, Kohl’s further downgraded its guidance for Q2, citing “macroeconomic issues” such as inflation and a slowdown in consumer spending.
Kohl’s expects sales to be down in the high-single digits for Q2, compared to its previous expectation of down in the low-single digits compared to last year.
While there has been a general surge in CEO departures across retail, Gass has stayed put amid weak financial results, a failed sale and an attempted takeover bid by Macellum Advisors, which owns nearly 5% of shares at Kohl’s.
Gap Inc. late Monday announced that its president and CEO Sonia Syngal would step down from her role in the company, just months after Nancy Green stepped down from her role as president and CEO of Old Navy. In June, notable departures included Under Armour president and CEO Patrik Frisk, Bed Bath and Beyond CEO Mark Tritton and the RealReal founder and CEO Julie Wainwright.