NEW YORK (TheStreet) -- Shares of Kohl's (KSS) - Get Report are down by 4.21% to $44.58 as Citigroup cuts its price target on the retailer to $46 from $50 based on a 'tough' quarter for the retailer segment, warmer weather and changing consumer habits.

The unseasonably warm weather and weak traffic trends resulted in a shortfall in sales and a rise in inventory, Citi said in a note.

"Based on our channel checks and commentary from vendors including KORS and RL (covered by Citi analyst Kate McShane), we believe the department store channel had a tough quarter (and faces a challenging future)," Citigroup added.

"Warm weather combined with already weak traffic trends likely led to a shortfall in sales and we expect inventory to appear elevated across the sector. We believe this is particularly true for the mid-tier players," the firm continued.

Citigroup lowered its full year 2015 earnings estimates on Kohl's to $3.94 per share from $4.09 per share as it believes the combination of weak comps and elevated inventory could "spook" the market ahead of the holiday season.

Separately, TheStreet Ratings team rates KOHL'S CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate KOHL'S CORP (KSS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.89, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.29 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Multiline Retail industry. The net income has significantly decreased by 44.0% when compared to the same quarter one year ago, falling from $232.00 million to $130.00 million.
  • Net operating cash flow has significantly decreased to $251.00 million or 54.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: KSS

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.