Kohl's stock: is Michael Bender the right leader to drive KSS shares higher?

Kohl’s (NYSE: KSS) is in focus today after the retailer named Michael Bender its permanent chief executive, ending months of speculation about who would lead the beleaguered department store chain.

Bender – who stepped in as interim CEO in May – now takes the reins at a pivotal moment for the NYSE-listed company as it seeks to stabilise sales and restore investor confidence.

At the time of writing, Kohl’s stock is up more than 10% versus the start of this year (2025).

Bender’s initiatives that could drive Kohl’s stock higher in 2026

Bender’s leadership style has already begun to reshape Kohl’s operational playbook.

On the earnings call in late August, he acknowledged that economic pressures are weighing on lower- and middle-income shoppers, many of whom are trading down to cheaper brands.

To counter this shift, Bender has leaned into it by reintroducing categories that resonate with value-conscious customers – like the petite section and the jewellery counters.

Additionally, under his leadership, KSS is tapping on discount coupons that apply to a wider range of merchandise to win back customers who had grown frustrated with restrictive promotions.

These changes, while incremental, signal a renewed focus on customer loyalty and affordability – and the approach has already started to resonate with Kohl’s shares.

While Kohl’s hasn’t promised a timeline for returning to sales growth, it topped Street expectations in Q2 and narrowed full-year guidance, indicating Bender’s initiatives are already stabilising the business.

For investors, that’s a critical signal that the turnaround strategy is gaining traction – and that could drive KSS stock higher in 2026.

KSS shares’ valuation also warrant owning for the long-term

Kohl’s board of directors has thrown its full support behind Michael Bender.

At 64, he brings more than three decades of retail leadership experience, having held senior roles at Victoria’s Secret, Eyemart Express and even Walmart Inc.

According to board chair John Schlifske, “over the past several months, as interim CEO, Michael has been an exceptional leader for Kohl’s, progressively improving results, driving short and long-term strategy.”

He also confirmed that the retailer conducted a comprehensive search before settling on Bender – citing his “deep commitment to the Kohl’s brand.”

Moreover, from a valuation perspective as well, Kohl’s stock is worth owning heading into 2026.

The NYSE-listed firm is currently going for 0.1x sales only – indicating meaningful potential for multiple expansion.

If its Q3 earnings tomorrow (Nov. 25) reinforce that profitability is improving even as sales remain under pressure – that may be a strong signal to own KSS shares, especially since they pay a healthy dividend yield of 3.19% currently.

On the flip side, however, Wall Street analysts remain in the “wait-and-see” mode on Kohl’s stock.

The consensus rating on it remains at “moderate sell” with the mean target of about $13, indicating potential “downside” of another 17% from here.