Shares of Kohl's (KSS) tumbled 5.01% in Tuesday's trading session, reflecting ongoing concerns about the department store chain's performance and future prospects. The sharp decline comes as investors continue to grapple with the company's recent challenges and a significant dividend cut.

Kohl's has been facing an uphill battle in the competitive retail landscape, with same-store sales continuing to decline. In its most recent fiscal first quarter, the company reported a 3.9% drop in comparable store sales. Adding to investor worries, management projects a further 4% to 6% decrease in same-store sales for the current year, signaling ongoing difficulties in attracting and retaining customers.

The company's decision to slash its quarterly dividend earlier this year has also weighed heavily on investor sentiment. The board of directors reduced the dividend from $0.50 per share to $0.125 per share, a move that typically indicates financial strain. This cut, combined with the company's projection of earning between $0.10 to $0.60 per share in 2025, has raised concerns about the sustainability of even the reduced dividend payout.

As Kohl's struggles to navigate these challenges, its stock performance has significantly lagged behind the broader market. Over the past three years, Kohl's shares have lost approximately 80% of their value, while the S&P 500 index has gained 60% during the same period. This stark underperformance highlights the depths of the issues facing the retailer and helps explain the continued selling pressure on the stock.