Kohl's Corporation (KSS) shares jumped 5.07% in pre-market trading on Thursday following a series of significant announcements from the company. The department store chain revealed the termination of CEO Ashley Buchanan for cause and provided preliminary expectations for its first-quarter 2025 financial results.

According to a company statement, Kohl's Board of Directors terminated Buchanan after an investigation conducted by outside counsel determined he had violated company policies. The investigation found that Buchanan had directed the company to engage in vendor transactions involving undisclosed conflicts of interest. The Board emphasized that the termination was unrelated to the company's performance or financial reporting.

In the wake of this leadership shakeup, Kohl's appointed Michael Bender as Interim CEO, effective immediately. Bender, who has served as a Director of the Board since July 2019 and was appointed Board Chair in May 2024, brings over three decades of leadership experience in retail and consumer goods companies. The Board expressed full confidence in Bender's ability to lead the company during this transition period and has initiated a search for a permanent CEO.

Alongside the management change, Kohl's provided preliminary expectations for its first quarter 2025 financial results. The company anticipates comparable sales to be in the range of -4.3% to -4.0%, operating income between $40 million and $45 million, and diluted earnings per share (EPS) in the range of -$0.24 to -$0.20. These projections, while indicating some challenges, appear to have been received positively by investors, contributing to the stock's pre-market rally.