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Kohl's makeover does not work – CNN

On Tuesday, the company said sales in stores that open at least one year increased by anemic 0.4% over the past quarter. Kohl's earnings fell by 24% during the quarter compared to a year ago, and the retailer lowered its outlook on the holiday shopping route. It was the second time Kohl lowered his forecast this year.

CEO Michelle Gass tried to put her best spin on the results. "We are going into the holiday with speed," she said in a prepared statement.

It did little to mull investors. Kohl's ( KSS ) filed on Tuesday. Shares fell as much as 17% during early trading. Macy & # 39; s ( M ) and Nordstrom ( JWN ) also dropped. These two chains report revenue later in the week.

The results indicate that Kohl's makeover strategies are decreasing.

Despite Kohl's attempt to reinvent himself to adapt to major changes in the retail industry, the company still "does not avoid intense pressure on department stores from Amazon ( AMZN ) ] online brands, retailers and discount chains like TJMaxx. Since 201
1, Kohl & # 39; s has lost 17% of its market share according to an UBS estimate earlier this year.
And TJX ( TJX ) which includes TJMaxx and Marshalls, said Tuesday that store sales open at least one year increased by 4% last quarter. The company has included its guidance for the remainder of the year.

Gass, Kohl's CEO, has taken a proactive approach to redo the retailer's more than 1,150 stores for online shopping time, which many analysts consider Kohls to be in a better position than Macy's, JCPenney and other mall brands et because the majority of Kohl's stores are away from malls.

Kohl has partnered with Amazon to provide free returns for customers in stores. Gass said earlier this year that rolling out Amazon to all of its stores was the company's "single biggest initiative" for the year.

It has also reduced the size of some stores and leased the extra space to companies such as Aldi and Planet Fitness ( PLNT ) . It has also tested concepts like "outfit bars" to draw Millennials. Outfit bars allow women to "shop" for work and social occasions – in one place.

But in order to survive, Kohl may need to get bigger.

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