Kohl's is getting smoked after missing on earnings across the board

Options Insight: What to Expect From Kohl's Earnings

Kohl's shares fell by as much as 6% in pre-market trading after the company reported a drop in net sales for the first time in six quarters.

The department-store chain's results on the most important metrics missed Wall Street's expectations.

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Kohl's reported total net sales of $3.97 billion, less than the forecast for $4.13 billion according to Bloomberg.

Sales at established stores fell 3.9%, missing the forecast for a rise by 0.4%. Adjusted earnings per share (EPS) was $0.31, with $0.37 expected.

And just like Gap and Macy's earlier this week, Kohl's earnings show that the industry is still a tough one for retailers.

Convenient online shopping, changing consumer tastes and deep discounts to move excess inventories are all working together to crush retailers.

"First quarter sales were challenging," CEO Kevin Mansell said in the earnings statement.

"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."

Kohl's shares have fallen 48% over the last year. Screen Shot 2016 05 12 at 7.50.25 AM(Kena Betancur/Getty)

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Kohl's is getting smoked after missing on earnings across the board
TORONTO, ONTARIO, CANADA - 2016/03/08: Sears store entrance, is an American chain of department stores. Known for selling high quality clothing article from shoes to shirts. (Photo by Roberto Machado Noa/LightRocket via Getty Images)
Macy's Inc. signage is displayed at a department store in New York, U.S., on Monday, Feb. 22, 2016. Macy's Inc., the largest U.S. department-store company, is scheduled to report fourth-quarter 2015 earnings before the opening of U.S. financial markets on February 23. Photographer: Michael Nagle/Bloomberg via Getty Images
J.C. Penney Co. signage is displayed outside of a store at the Gateway Shopping Center in the Brooklyn borough of New York, U.S., on Saturday, Aug. 8, 2015. J.C. Penney Co. is scheduled to release earnings figures on Aug. 14. Photographer: Michael Nagle/Bloomberg via Getty Images
UNITED STATES - JUNE 09: Customers enter the Dillards department store at Parkdale Mall, in Beaumont, Texas, Wednesday morning, June 9, 2004. A judge declared a mistrial in a lawsuit brought against Dillard's Inc. by 17 black shoppers in Texas who claimed that security guards at the department store chain harassed them because of their race. (Photo by Scott Eslinger/Bloomberg via Getty Images)
MIAMI, FL - APRIL 19: A Nordstrom sign is seen outside a store on April 19, 2016 in Miami, Florida. Nordstrom on Monday said in a cost-cutting measure they are expecting to lay off 350 to 400 people. (Photo by Joe Raedle/Getty Images)
The sign outside the Kmart store is seen in Broomfield, Colorado November 19, 2009. Sears Holdings Corp posted a narrower-than-expected quarterly loss November 19, 2009, helped by the first increase in same-store sales at its Kmart unit in four years. REUTERS/Rick Wilking (UNITED STATES BUSINESS)

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