Kohl's Still Isn't Cool

5/16 - "Private-brand apparel retailer Kohl's (NYSE: KSS) continued to struggle mightily during its first quarter. I know this is sounding like a broken record, following the company's dreadful fourth quarter, but when consumers are feeling the pinch, retailers selling discretionary items such as apparel and home furnishings are bound to suffer."

"Total sales grew 1.5% on the strength of 123 more stores being open this year than last. But comparable-store sales slipped by 6.7% -- the third (and worst) quarter in a row of negative comps for the company...The company issued guidance in line with analyst expectations. Comps are expected to fall 3%-5% for the year, and earnings are forecasted to slip for the balance of 2008, but at an increasingly slower rate as the year progresses."

"At 14 times next year's earnings, Kohl's just isn't a great buy. Nibbling a few shares on dips might be OK, since consumers will eventually start buying apparel again."