Kohl's CEO Michelle Gass steps down to take up Levi's role

Kohl’s CEO Michelle Gass is stepping down after the retailer came under pressure to reshuffle its leadership.

Confirming her joining as its CEO, Levi Strauss & Co. said on Tuesday Gass will take charge in early January as president and step into the role of CEO within the next 18 months. She will succeed Chip Bergh.

Gass is going to resign on Dec. 2 and Tom Kingsbury will serve as interim CEO of Kohl’s.

The firm came under pressure from activist investors to shake up management amid business loss.

Kohl’s said that same-store sales will be down 6.9 per cent, while net sales will be down 7.2 per cent compared to the year-ago period. The company is expected to release its results on Nov. 17. Shares of Kohl’s closed Tuesday at $28.82, up about 7%. Shares of Levi ended the day at $14.86, down about 3%.

Kohl’s and Gass have faced some stormy situations from investors after the retailer reported weak sales results. Activist investor Ancora Holdings pushed Kohl’s to remove Gass from the position, a WSJ report said.

Another activist investor, Macellum Advisors, also expressed his unwillingness to retain Gass and recommended her ouster.

Tom Kingsbury, Kohl’s director, will assume charge as interim CEO till the leadership change takes effect on December 2.

In recent times, the firm has failed to appeal middle-income consumers, who feel squeezed by inflation.

Kohl’s stock is down more than 40% so far this year, and the company has a market cap of about $3.37 billion.