Baird downgraded Kohl's (NYSE:KSS) to "neutral" from "outperform" after the company's weak third quarter and noted the ongoing pressure in its core apparel and footwear business, among notable challenges.

Kohl's reported disappointing Q3 earnings as sales in key segments lagged expectations, prompting a downward revision of its full-year outlook.

Analysts expect Kohl’s to report quarterly earnings at 27 cents per share. That's down from 54 cents per share a year ago. The Menomonee Falls, Wisconsin-based company projects to report quarterly revenue of $3.71 billion, compared to $3.84 billion a year earlier, according to data from Benzinga Pro.

Financial struggles at Kohl's Corporation lead to a 37% stock drop in 2021. Read why KSS stock is downgraded to Hold.

Kohl's Corporation KSS shares tumbled as much as 18.5% in the pre-marketing session as the company posted dismal third-quarter fiscal 2024 results and lowered its full-year outlook. The company’s top and bottom lines decreased year over year and missed the Zacks Consensus Estimate.