Should Kohl's Guidance Worry Long-Term Investors, Or Is It Much Ado About Nothing?

Investors in

saw some very mild relief over Monday's trading session. After plunging nearly 18 percent on Thursday of last week amid

, the stock rebounded more than a percent Monday. UBS analyst Michael Binetti issued a research note early Monday morning, certainly not helping bulls in the stock. The analyst, in the title of the note, questioned, "Was KSS 4Q Guide Down Weather or a Signal About Longer-Term Trends?" Binetti reduced his fourth-quarter EPS estimate from $1.95 to $1.58 and his FY15 estimate from $4.37 to $4 even. The analyst consensus estimate shows analysts have modeled for quarterly earnings of about $1.57 per share and FY15 EPS around $4.03. Reflecting the lowered earnings estimates, Binetti trimmed his price target on shares of Kohl's from $49 to $45. "We believe KSS ended 4Q with high inventories, which will likely further pressure 1Q16—which, in combination with a slow exit rate from January, will likely lead to a more conservative and back-weighted FY16 EPS guide," according to Binetti.