06:34 AM EST, 11/26/2024 (MT Newswires) -- Kohl's (KSS) stock declined early Tuesday as the department store chain announced that Tom Kingsbury will step down as chief executive in January, with retail industry veteran Ashley Buchanan set to succeed him.

Kingsbury, who has been the permanent CEO of Kohl's since February 2023, will leave the role on Jan. 15, the company said in a late Monday statement. Buchanan will assume the top role on the same day. Shares of the company decreased 3.2% in premarket activity.

"The board is very grateful for Tom's leadership and ongoing service to Kohl's," Chair Michael Bender said in the statement. "Under his leadership, the company is undergoing a transformation to elevate its product portfolio, enhance the store experience and improve its long-term financial health and profitability."

Buchanan joins the department store chain from arts-and-crafts retailer Michaels Cos., where he has been CEO since 2020. He previously held several senior executive roles at Walmart ( WMT ) during his 13-year tenure at the retail giant, including positions in its US operations and Sam's Club.

"We are excited to welcome Ashley to Kohl's," Bender said. "His vast retail experience leading operations, merchandising, and e-commerce at Walmart ( WMT ) and his past five years as CEO of Michaels will bring a steady, proven, innovative leader to Kohl's as we continue to transform the business and drive future growth."

Kingsbury, who joined Kohl's board of directors in 2021, will remain in an advisory role to Buchanan and retain his position on the board through his retirement in May 2025, according to the company.

Kohl's plans to release its third-quarter earnings results before Tuesday's opening bell. The current consensus among analysts on FactSet is for per-share earnings of $0.28 and sales of $3.64 billion for the three-month period. Same-store sales are projected to have declined by 5.1% in the period.