Department store chain Kohl's Corporation today (21 August) named Kevin Mansell as its new chief executive officer, replacing Larry Montgomery who will remain chairman of the board.

Mansell, a 26-year veteran of the retailer, has served as president since 1999 and will continue to serve on the board of directors.

He will be responsible for the development and execution of strategic initiatives, day to day operations, and Kohl's long term growth plan.

In addition to his current management responsibilities for product development, logistics/store planning, merchandise planning, information systems, ecommerce, marketing and business development, he will also manage finance and store operations.

"Having worked with Kevin for over 20 years, I am confident he is the right choice to lead Kohl's Corporation," said Montgomery.

"His strategic vision, in depth management experience, and extensive knowledge of Kohl's and the retail landscape, will allow him to effectively manage the organization for long term sustainable growth."

As well as remaining as chairman, Montgomery will hold full time management responsibilities for the company's strategic growth and manage its human resources, legal and real estate departments.

The changes come a week after Kohl's posted a 12.3% drop in second quarter profit, to $236.0m, from $269.2m  a year ago.

Net sales rose 3.8% to $3.7bn , but comparable store sales for the quarter were down 4.6%.

However the retailer, which operates 957 stores, raised its full-year earnings guidance on the calculation that a 4% drop in same-store sales for the rest of the year would beat its earlier forecasts.