Kohl's Corporation (KSS) shares are soaring 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 beat 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, effective immediately.

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 appear to be better than analysts' expectations, with the EPS outlook significantly above the consensus estimate of -$0.52 per share. Investors seem to be reacting positively to this outlook, contributing to the stock's rally.