Kohl’s is bringing aboard a new, digitally-focused CEO. Its shares are falling.

Kohl’s said Ashley Buchanan would take over as its chief executive on Jan. 15. Kingsbury will leave the CEO role at that time, but will help with the leadership transition and stay on Kohl’s board through his retirement in May.

Kohl’s shares fell 4.6% after hours on Monday, after finishing regular trading up 7.7%.

The company announced the leadership change a day before it was set to report quarterly earnings. As of Monday’s close, shares of Kohl’s are down 36% so far this year.

Kingsbury became Kohl’s interim CEO in 2022 — after Michelle Gass left the role — and had agreed to take on the role permanently through May 2025. Gass is currently the chief executive of Levi Strauss & Co.

Other retailers such as Nike Inc. and Under Armour Inc. have announcedCEO changes this year, as they deal with rising competition and a more muted demand backdrop. Urban Outfitters Inc. this year hired a new president to oversee its struggling namesake stores in North America, and Gap Inc. got a new chief executive last year.

Michael Bender, Kohl’s board chair, said Monday that during Buchanan’s time at Michaels, “he improved profitability and cash flow while driving operational efficiencies across the business. He also introduced new ways to leverage technology and e-commerce, allowing Michaels to more effectively meet customers where they are today.”

Before that, Buchanan worked as chief merchandising and chief operating officer for Walmart’s U.S. e-commerce segment. He was also the chief merchant at Sam’s Club. He has also held jobs at Dell Technologies Inc. and Accenture

When Kohl’sreported quarterly results in August, its sales missed expectations. Management said that while it attracted more new shoppers over that time, with gains in its in-store Sephora outlets, “customers exhibited more discretion in their spending.”