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

Investors in Kohl's Corporation (NYSE: KSS) saw some very mild relief over Monday's trading session. After plunging nearly 18 percent on Thursday of last week amid lowered fiscal year 2016 guidance, 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.