New York (CNN Business) Kohl's innovative strategy to draw customers into its stores won the company praise and fans on Wall Street. But shoppers are going elsewhere, and investors are losing confidence in Kohl's.

The company on Tuesday said sales at stores open at least a year grew an anemic 0.4% during its most recent quarter. Kohl's profit fell 24% during the quarter compared with a year ago, and the retailer slashed its outlook heading into the holiday shopping stretch. It was the second time Kohl's cut its forecast this year.

CEO Michelle Gass tried to put her best spin on the results. "We enter the holiday period with momentum," she said in a prepared statement.

Kohl's KSS Macy's M Nordstrom JWN It did little to mollify investors.stock tumbled on Tuesday. Shares fell as much as 17% during early trading.andalso dropped. Those two chains report earnings later this week.

The results signal that Kohl's makeover strategies are falling short.

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