U.S. department store chain Kohl’s (KSS) joins the growing list of companies moving away from the term “diversity, equity, and inclusion” (DEI) amid rising political pressure. The retailer has replaced DEI references from its website with the phrase “inclusion and belonging.”
Further, the company has changed the job title of its DEI leader to reflect a wider focus. The title has been changed from “Chief DEI Officer” to “Chief Inclusion and Belonging Officer.” This change reflects a shift in focus to create a more inclusive environment for employees and customers. In addition, Kohl’s is expanding its supplier diversity program to support eligible small firms.
Kohl’s move mirrors a trend among major retailers, such as Victoria’s Secret (VSCO), Target (TGT), and Walmart (WMT), which are pulling back their DEI initiatives. These changes involve removing diversity-focused hiring and promotion goals.
KSS Stock Craters 33% Post Q4 Results
The DEI changes come almost a week after the company reported better-than-expected fourth-quarter results. However, KSS stock has declined over 33% since it released earnings on March 11, due to the year-over-year decline in earnings and revenues, along with weak guidance for 2025.
Adding to investor concerns, Kohl’s announced a steep cut to its quarterly dividend, reducing it from $0.50 per share to $0.125.
Kohl’s New CEO Focused on Restructuring
The shift in DEI policies comes amid new CEO Ashley Buchanan’s ongoing restructuring efforts to improve Kohl’s profitability and streamline operations. Earlier this year, Kohl’s disclosed cost-cutting measures, which included a 10% reduction in its corporate workforce and plans to close 27 underperforming stores by April, including a fulfillment center in California.
These efforts reflect KSS’ efforts to adapt to a challenging retail landscape and keep itself well-poised for long-term growth.
Is KSS a Good Stock to Buy?
Turning to Wall Street, KSS stock has a Moderate Sell consensus rating based on six Holds and five Sells assigned in the last three months. At $9.30, the average Kohl’s stock price target implies 15.38% upside potential.
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