Kohl's Corporation (KSS) shares surged 6.79% in intraday 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 that exceeded analysts' estimates.

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. Michael Bender, who has served as a Director of the Board since July 2019 and was appointed Board Chair in May 2024, has been named Interim 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, particularly the EPS outlook, appear to have beaten Wall Street's expectations, as the consensus estimate was for a loss of $0.52 per share. The better-than-expected financial outlook, combined with the swift action taken by the board to address leadership issues, seems to have boosted investor confidence, driving the stock's significant gain.