Kohl's set for worst day after forecasting a bigger-than-expected drop in 2025 sales

Shares of U.S. department store chain Kohl's KSS.N fall as much as 24.6% to a more than 28-year low of $9.09

*Stock set for its worst day on record, if losses hold

Company forecasts bigger-than-anticipated drop in annual sales, and expects profit to be below estimates as it grapples with uneven demand amid its turnaround efforts

Co also reports bigger-than-expected fall in Q4 same-store sales, marking its 12th consecutive quarter of decline, while adjusted EPS beat estimates

Larger peer Macy's M.N and big-box retailers such as Walmart WMT.N and Target TGT.N have also provided cautious forecasts due to inflation risks and impact of President Donald Trump's tariffs

*Analyst David Silverman of Fitch Ratings sees a challenged selling environment for discretionary goods in 2025

"Modestly weakening consumer sentiment is accompanied by lack of significant newness in fashion and the risk of higher price inflation due to tariffs" - Silverman

KSS fell 51% in 2024, and was down 14.2% YTD as of last close