Kohl's Analyst Roundup From Credit Suisse, Deutsche Bank

Kohl’s Corp. KSS fell over 6 percent Tuesday amid guiding lower on FY 2014.

Credit Suisse and Deutsche Bank issued adjusted forecasts for the company.  Both maintained their ratings and offered the following observations.

Credit Suisse - Neutral, $50 price target

Kohl’s confirmed that its sales missed its internal expectations. They are now expected to decline -1.4 percent as opposed to being positive. We have adjusted our quarterly and full year estimates for this shortfall and modest expectations for the fourth quarter. The timing of this release can be seen as either unfortunate or fortuitous as it comes before the company’s first analyst presentation in seven years that begins [Tuesday] in Milwaukee. We expect the company to announce incremental initiatives but nothing sweeping in nature.

Deutsche Bank - Hold, $52 price target

We spoke with the CFO post release and note that lackluster results in women's apparel, particularly private brands, drove much of the underperformance with Home also below average. October was the surprise as results spread widely from plan with seasonal items experiencing sharp declines, suggesting weather may have been a headwind. Positively, inventory remains in good shape as KSS did not buy heavy in Fall apparel. Specifically, inventory per store is expected to end the quarter flat to slightly down and they remain on track to end down at YE.

Kohl’s Corp. traded at $54.59 in the aftermarket, down 0.13 percent.