Kohl's Corporation (KSS) stock surged 5.06% in intraday trading on Friday, following the unexpected termination of CEO Ashley Buchanan due to an ethics violation. The board's decision to remove Buchanan and swiftly appoint Michael Bender as Interim CEO appears to have been well-received by investors, despite the company's recent struggles with declining revenues.

According to an investigation overseen by the board's audit committee, Buchanan was fired for cause after it was discovered he had directed the company to enter into a "highly unusual" business deal involving a woman with whom he had a romantic relationship. The company emphasized that the termination was unrelated to Kohl's financial performance or operational results, which may have alleviated some investor concerns about the retailer's underlying business.

The market's positive reaction comes as a surprise given Kohl's recent challenges, including 12 consecutive quarters of revenue declines. Investors may be interpreting the leadership change as an opportunity for a fresh start and potential turnaround for the struggling retailer. Michael Bender, the newly appointed Interim CEO, brings experience as a former president and CEO of Eyemart Express and previously served as COO of global eCommerce at Walmart, potentially instilling confidence in the company's ability to navigate this transition.