Shares in the Menomonee Falls, Wisconsin-based retailer slumped 10% in premarket trading.
Decades-high inflation, although now easing, has made Americans more wary of opening their wallets to clothing, shoes and other non-essentials, pressuring demand at retailers and leaving them with bloated inventories.
While a return to offices and social events coupled with a resilient high-income consumer have buoyed sales of dressy, high-end fashion, Kohl's, which leans toward more casual styles and caters to low-income customers, is taking a bigger hit.
The U.S. department store chain now expects fiscal 2022 net sales to fall between 5% and 6%, compared with its previous forecast of flat to 1% growth.
The company said it expects 2022 earnings per share of $2.80 to $3.20, compared with its previous forecast of $6.45 to $6.85. Analysts on average expect a profit of $4.06 per share, according to Refinitiv data.