(FROM THE WALL STREET JOURNAL 2/13/16) 
   By Suzanne Kapner 

Kohl's Corp. has eliminated three senior leadership positions at a time when the department-store chain is battling sluggish sales and a depressed share price.

The three executives holding the positions -- chief digital officer, senior vice president of store environment and development, and senior vice president of communications and public relations -- were informed of the decision on Thursday.

A Kohl's spokeswoman said the moves were part of a reorganization designed to make the company more agile.

The reorganization comes as Kohl's board of directors is weighing options that could include a partial or full sale of the business to a private-equity firm, people familiar with the conversations have said. These people cautioned, however, that the discussions were preliminary and Kohl's board may choose to take no action.

Like other department stores, Kohl's has struggled with sluggish growth losing out to online rivals and fast-fashion chains. In recent years, overall sales growth has been flat while profits have been declining. Sales at stores open at least a year have fallen for its financial years that ended in early 2015 and 2014. The company reports full-year earnings for its recently completed financial year later this month.

The retailer, which is based in Menomonee Falls, Wis., has laid out a plan to increase sales to $21 billion by 2017, up from $19 billion in the fiscal year that ended in January 2015. But sales growth in the past year has continued to be weak, edging up 1% to $12.8 billion in the nine months through October.

In the latest quarter, results came in below the company's plans, prompting Kohl's this month to lower its earnings guidance for the year.

Shares of the company have declined roughly 40% over 12 months, which could make it a target for activist investors. On Friday, the stock closed up 2.8% at $40.81 in New York.

 

(END) Dow Jones Newswires

February 13, 2016 02:47 ET (07:47 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Kohls (NYSE:KSS)
Historical Stock Chart
From Mar 2024 to Mar 2024 Click Here for more Kohls Charts.
Kohls (NYSE:KSS)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Kohls Charts.