(KSS - Get Report)
was one of the biggest surprises of the month, reporting a 6.2% plunge in same-store sales compared with consensus estimates of a 2% increase.
This came despite compelling promotions, its midnight Black Friday opening and the highly successful launch of the new Jennifer Lopez and Marc Anthony lines.
"November sales were disappointing. We were encouraged by our improved performance in both stores and e-commerce over the Thanksgiving weekend," said CEO Kevin Mansell. "A majority of our planned incremental marketing investment is in December and we expect to be able to benefit as customers look for value as they complete their holiday shopping."
"While unseasonably warm weather likely had a negative impact on sales, we believe that the moderate income consumers, Kohl's target, is feeling particularly constrained and management is challenged to motivate her to shop and spend," Jaffe wrote in a note.
It also appears that sales are being funneled to rival
(M - Get Report)
, which reported a 4.8% jump in same-store sales, better than the 3.6% increase Wall Street expected.
Macy's also opened at midnight, but saw more success.
"A strong Black Friday punctuated our very positive sales performance throughout November at both Macy's and Bloomingdale's. This was the first year that Macy's stores opened at 12 midnight on Black Friday, which particularly attracted millennial customers who gravitate to the fashion, newness and value in our merchandise assortments," said CEO Terry J. Lundgren.
Shares of Kohl's fell 3.6% to $50.20 in morning trading Thursday.
Reported by Jeanine Poggi in New York.
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