What happened

Shares of Kohl's (KSS -0.52%) were down 6% as of 12:43 p.m. ET on Thursday after the company reported results for the second quarter. The stock has fallen 35% year to date. 

In the most recent quarter, revenue declined 8% year over year, which management blamed on a weakening economy and lower consumer spending. 

So what

Investors have seen the weak performance coming; several analysts had downgraded the stock in recent weeks. Similar to what other retailers have reported, management said it is adapting to an environment in which people are making fewer shopping visits.

Meanwhile, management is not taking its eye off the long term. Kohl's has refreshed nearly 600 stores in partnership with Sephora, and they are already showing satisfactory performance. Management is looking to roll out more Kohl's shops with Sephora in 2023. 

Now what

Most disappointing for investors was management's revised guidance, which was lower than the previous outlook. The company now expects net sales to decline between 5% and 6% year over year, with earnings per share in the range of $2.80 to $3.20 excluding nonrecurring items. 

Despite the weak outlook, management announced a $500 million accelerated share repurchase program. The company is also committed to paying the current dividend to shareholders. The stock currently sports a cheap price-to-sales ratio of 0.23 and an above-average dividend yield of 4.7%. 

Even when the economy is stronger, Kohl's still has a lot to prove to investors. Revenue has been stagnant for the better part of the last 10 years, which has caused the stock to badly underperform the broader market.