Timm has been with Kohl’s since 1999 and became finance chief in 2019, having previously held various finance leadership roles, including VP of financial planning and analysis and EVP of finance.
“As Timm has been around through multiple CEO changes, she provides stability at a company that has lacked it,” David Swartz, senior equity analyst at Morningstar, told me, though he added that a new CEO could insist on making executive changes.
Swartz also said Kohl’s needs a CEO with long-term vision and experience in retail and apparel. “It hasn’t really had this in years,” he said, emphasizing the need for a strategic plan for real estate and greater adaptability to competitive threats. “Obviously, the board and its search firm need to do a much better job than it did with Ashley Buchanan, which was a disaster,” he said.
Kohl’s outperformed Morningstar’s expectations on EPS, margin, and comparable sales, with shares still “very undervalued” versus Morningstar’s estimates of $40 fair value. Modest Q2 gains have not changed Swartz’s long-term forecast for 1% comparable sales growth and 5% operating margins.
Kohl’s turnaround centers on rebuilding proprietary brands, simplifying promotions, improving the omnichannel experience, and regaining its reputation for value and quality.
On the earnings call, Timm stressed Kohl’s continued focus on value: “We’re also navigating a lot of uncertainty in the macro environment, and we know our consumer, particularly the middle- and lower-income customer, remains under pressure, and so we’re going to have to fight for every dollar in the back half.”
