Baird downgraded Kohl's (NYSE:KSS) to "neutral" from "outperform" after the company's weak third quarter and noted the ongoing pressure in its core apparel and footwear business, among notable challenges.

Kohl's reported disappointing Q3 earnings as sales in key segments lagged expectations, prompting a downward revision of its full-year outlook.

Financial struggles at Kohl's Corporation lead to a 37% stock drop in 2021. Read why KSS stock is downgraded to Hold.

At this time, I'd like to welcome everyone to the Kohl's Corporation third quarter 2024 earnings conference call. Please note that this call is being recorded. At this time, all participants are in a listen-only mode.

The Zacks Consensus Estimate pegs anticipated revenue at $3.8 billion, a 5.3% decline from last year's third-quarter revenue, with analysts saying Kohl’s (NYSE: KSS) continues to “face significant challenges due to a tough macroeconomic environment.”

Analysts expect Kohl’s to report quarterly earnings at 27 cents per share. That's down from 54 cents per share a year ago. The Menomonee Falls, Wisconsin-based company projects to report quarterly revenue of $3.71 billion, compared to $3.84 billion a year earlier, according to data from Benzinga Pro.

Kohl's stock is sinking Tuesday after the retailer missed Q3 earnings expectations, slashed its full-year outlook and announced a C-suite shakeup.