09:45 AM EDT, 05/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target by $8 to $20, based on 11.4x our FY 25 (Jan.) EPS estimate and in between the company's three- and five-year average forward P/E multiple. We lower our FY 25 EPS estimate by $0.75 to $1.75 and lower our FY 26 EPS estimate by $0.50 to $2.25. KSS posted normalized Q1 EPS of -$0.24 vs. $0.13 and $0.30 below consensus estimates on revenues of $3.18B vs. $3.34B and $180M below estimates. KSS lowered its full-year EPS guidance to between $1.25 and $1.85 with net sales down between 2% and 4%. Q1 gross margin expanded 50 bps Y/Y to 39.5% as inventory dropped 13% Y/Y. Management said it saw positive trends in its Women's business and strong growth at Sephora. Management sees its partnership with Babies "R" Us contributing more meaningfully in the future. Shares declined +20% in pre-market trading and still look unattractive from a valuation standpoint after an underwhelming quarter and bad guidance. We remain at Hold and see better opportunities within retail and department stores.