Kohl’s Corp. (NYSE: KSS) reported first-quarter 2016 results before markets opened Thursday. The department store retailer posted adjusted diluted earnings per share (EPS) of $0.31 on revenues of $3.97 billion. In the first quarter of 2015, the company reported EPS of $0.63 on revenue of $4.12 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.37 and $4.13 billion in revenue.

Same-store sales for the quarter fell 3.9% year over year, compared with a 1.4% rise in the first quarter of 2015.

On a GAAP basis, EPS totaled $0.09 and excluded impairments, store closings and other costs. Last year’s first-quarter income totaled $0.63.

Adjusted operating income as a percentage of net sales fell from 6.8% in the first quarter of last year to 4.3%, and adjusted net income fell from 3.1% to 1.5%. Gross margin fell from 36.9% to 35.5% and net income cratered, falling 87%.

Kevin Mansell, Kohl’s chairman, CEO and president, said:

First quarter sales were challenging. Despite the sales environment, we were able to manage our gross margin and inventory levels consistent with our expectations as we took the markdowns necessary to clear excess inventory. We managed our expenses effectively throughout the quarter as every area contributed to our savings versus our plan.

The first quarter has not been kind to retailers, and Kohl’s is no exception. Consumers have just not been visiting malls and stores. That Kohl’s pays an annual dividend of $2.00 per share (yield of 4.74% at Wednesday’s closing price) won’t save the stock from a severe beating.

Shares traded down 8.3% Thursday morning to $35.50, after closing at $38.70 on Wednesday, down about 6% for the day, in a 52-week range of $38.59 to $68.08. The low was posted on Tuesday. The consensus price target on the stock is $47.77.

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