No-Moat Kohl’s Tumultuous 2022 Takes Another Turn With CEO Change; Shares Very Undervalued

Kohl’s announced Michelle Gass will step down as CEO on Dec. 2 and be replaced on an interim basis by current board member Tom Kingsbury. A former CEO of narrow-moat Burlington, Kingsbury joined the Kohl’s board in 2021 as part of an agreement with activist shareholder Macellum Capital. Gass, meanwhile, will join Levi Strauss as an executive and board member, and is expected to assume the CEO role within 18 months. While she has implemented some positive changes at Kohl’s, she has been under intense pressure all year as a possible sale of the company ended without a deal, the company fought off a proxy challenge from Macellum, and operating results have deteriorated.