Stifel lowers its price target on Buy-rated Kohl's (NYSE: KSS) from $85 to $80 following Q1 results and outlook issued earlier Thursday. The new price target is 16 times FY16 EPS estimates.

Analyst Richard Jaffe noted the following key takeaways from Kohl's conference call today:

• Loyalty Positively Impacting Results – Management indicated that non-credit outperformed credit for the first time, with both positive, as the company focused an increased effort on its nascent loyalty program in 1Q. This helped to motivate the “more occasional” shopper to stores. We believe that the impact from the loyalty program will be positive, helping to drive traffic and sales longer term.
• Strategic Initiatives Playing Out Favorably/Buyers of Shares in Weakness - The company’s strategic initiatives that were put in place over the last year continue to play out favorably, evident in the y/y comp and margin increase. As the company continues to make progress on these initiatives while improving the customer shopping experience we anticipate a continuation of positive comps and are encouraged for 2015. With shares trading down approximately 10% today, we would be buyers on weakness.
• Juniors a Drag on Comps – The juniors’ assortment negatively impacted comps by approximately 90 bps during the quarter. Management indicated that they are working to fix the assortment for the peak back-to-school selling season.

Jaffe updated the following estimates: 2Q, 3Q, 4Q, 2015 and 2016 EPS estimates to $1.16 (from $1.28), to $0.79 (from $0.84), to $1.95 (from $1.99), to $4.48 (from $4.62) and to $5.05 (from $5.25), respectively.

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