Here’s Why Kohl’s (KSS) Stock is Slumping Ahead of Q1 Earnings

NEW YORK (TheStreet) -- Kohl's (KSS) - Get Report stock is retreating 5.51% to $38.91 in early afternoon trading on Wednesday as shares are pressured by a selloff in the retail sector that was triggered by weak quarterly sales from Macy's (M).

Before today's market open, Macy's reported a 7.4% year over year decline in revenue to $5.77 million for the 2016 first quarter, falling short of estimates of $5.94 billion.

Kohl's is expected to report a year-over-year decrease in earnings per share, but a slight increase in revenue when the Menomonee Falls, WI-based retailer releases its fiscal 2016 first quarter financial results on Thursday before the market open.

Wall Street is anticipating earnings of 37 cents per share on revenue of $4.13 billion for the latest quarter, compared with earnings of 63 cents per share on revenue of $4.12 billion for the same period last year.

Kohl's same store sales are expected to be flat for the quarter, according to JPMorgan analysts.

So far today, 3.92 million shares of Kohl's have exchanged hands, compared with its average daily volume of 2.71 million shares.

(Kohl's is a holding of David Peltier's Dividend Stock Advisor portfolio. See all of his holdings with a free trial.)

Separately, Kohl's has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures.

You can view the full analysis from the report here: KSS

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.