Kohl’s Corporation shares are trading lower on Wednesday. The stock may be moving on continued weakness after the company reported fourth-quarter financial results and issued guidance on Tuesday.

What To Know: Kohl’s issued guidance for fiscal-year 2025, projecting a 5% to 7% decline in net sales and a 4% to 6% drop in comparable sales. The company cited “constrained” shoppers as one reason for the anticipated drop in net sales.

If you’re making less than 50 [thousand], that consumer is pretty constrained from a discretionary standpoint. If you’re making less than 100 [thousand], it’s also pretty challenging. And you see that very clearly in numbers,” said Kohl’s CEO Ashley Buchanan.

The CEO also noted that consumers are increasingly seeking better value in their purchases.

According to Commerce Department data, retail sales fell 0.9% across the U.S. in January, missing economist expectations of a 0.2% decline. A Bureau of Labor Statistics report indicates inflation eased in February, though rising shelter costs may continue to pressure low-income consumers.

Analyst Changes: Following the earnings report, multiple analysts cut their price targets.

Baird analyst Mark Altschwager maintained a Neutral rating on Kohl’s and lowered the price target from $18 to $11.

B of A Securities analyst Lorraine Hutchinson maintained an Underperform rating on Kohl’s and lowered the price target from $15 to $8.

Morgan Stanley analyst Kimberly Greenberger maintained an Underweight rating on Kohl’s and lowered the price target from $10 to $8.

Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating on Kohl’s and lowered the price target from $13 to $10.

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KSS Price Action: At the time of publication, Kohl’s stock is trading 6.72% lower at $8.53, according to data from Benzinga Pro.

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