Kohl's has been facing the brunt of a challenging retail environment since the last few quarters. Sluggish comps, higher inventory levels and higher operating expenses remain concerns. Last quarter, Kohl's earnings and revenues lagged the Zacks Consensus Estimate and the year- ago levels due to lower comps owing to a challenging retail environment. Gross and operating margins shrank due to lower revenues and higher operating expenses. Moreover, Kohl's high inventory levels and rising commodity costs added to the woes.