Kohl’s CEO Michelle Gass is leaving to lead Levi’s as its new chief

Kohl’s American department store giant announced on Tuesday, May 8, that its chief executive officer, Michelle Gass, is vacating her post. The company said she is leaving for a new opportunity amid the chain’s dropping sales.

CNBC reported that Kohl’s shares closed at $28.82 on Tuesday and were up by about seven percent. Kohl’s also revealed its preliminary results for the third quarter and said it expects comparable sales to decline 6.9% in the three-month period that ended on Oct. 29. The net sales were also down by 7.2% compared to the same time frame last year.

Kohl’s and Gass were said to have been facing criticism, and investors are doubting them as the fresh investments for the brand’s revitalization appeared to have done nothing to improve the profits since the recent sales results remained bleary.

Ancora Holdings, an activist investor, has been pushing for the ousting of Gass as Kohl’s CEO. Macellum Advisors, another investor, also want a reshuffle to change leadership, including the removal of Kohl’s chairman. The investors’ call for the management shakeup further escalated after the company ended the talks for the sale of its business to the Franchise Group in June.

The termination of the talks with The Vitamin Shoppe owner at that time sent stocks spiraling down. Kohl’s board snubbed the activist investors’ criticisms and continued with its plans to remodel the stores instead. It also added new brands, such as Sephora and offered new e-commerce options for customers.

In any case, Kohl’s said that Gass would be temporarily replaced by its current director, Tom Kingsbury. He will serve as interim CEO as the company looks for a permanent chief.

As Kohl’s announced the departure of Michelle Gass, it was reported that she is moving to Levi Strauss & Co. Her transfer was revealed when the clothing company released a statement for the appointment of Gass as its new CEO, who will succeed Chip Bergh. She is set to officially join Levi Strauss & Co. in early January 2023 as president and will eventually take on the role of chief in the next 18 months.

“We are delighted that an executive with Michelle’s background, experience and stature is joining as president to work side-by-side with Chip for a meaningful transition period before becoming CEO,” Levi’s board of directors chairman, Bob Eckert, said in a press release.

He added, “Michelle’s deep retail and omnichannel experience combined with her track record of building brands and meaningful innovation is a perfect fit for the skills needed to lead this company for the long term and create significant value for our stakeholders.”

Photo by: Mike Kalasnik/Flickr (CC BY-SA 2.0)