(Reuters) -Kohl's said on Monday that Tom Kingsbury plans to step down after a nearly two-year stint as CEO, sending the department store chain's shares down about 5% in extended trading.

Since Kingsbury was named as interim CEO in December 2022, Kohl's shares have lost more than 40%.

The company, which is scheduled to report third-quarter results on Tuesday, said retail veteran Ashley Buchanan will succeed Kingsbury.

Kohl's, like other department stores, has been struggling with patchy demand from bargain-hunting customers while spending on trendier clothing such as wide-legged jeans and logo-free shirts. Its beauty retailer Sephora has been a bright spot.

When Kingsbury was handed the job on a permanent basis in early 2023, the retailer had been struggling with high inventories as customers dialed back spending, forcing Kohl's to offer big discounts to clear their shelves.

Kingsbury, will stay in an advisory role to the new CEO and retain his position on Kohl's board through his retirement in May 2025.