Analyst Paul Trussell lowered his rating for Kohl's Corp. to "Sell" from "Hold." He said in a client note that some of the chain's exclusive merchandise is starting to lose its appeal and promotions and markdowns may be needed to draw shoppers.
Trussell said that Kohl's continues to lose share to off-price retailers like TJX Cos. and Ross Stores Inc., and J.C. Penney Co. is also a threat because of its return to promotional marketing. Colder temperatures also hurt the retailer's first-quarter sales, he added.
Trussell trimmed Kohl's price target to $41 from $42.
The Menomonee Falls, Wis., company's stock fell 24 cents to $46.19 in afternoon trading.