Kohl's (KSS) has lowered its annual forecast following weaker-than-expected third-quarter results, causing shares to drop by nearly 20%. The retailer also announced that CEO Tom Kingsbury will step down in January, after less than two years in the role.

CFRA analyst Zachary Warring joins Morning Brief Co-hosts Seana Smith and Brad Smith to discuss the CEO transition and the company’s challenging months ahead.

Warring notes that department stores are facing long-term headwinds, including the potential impact of President-elect Donald Trump’s proposed tariffs, which would impose an additional 10% tax on goods imported from China.

Since apparel relies heavily on imports from China, Warring cautions that the sector is likely to be “hit the hardest.”

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This post was written by Cindy Mizaku.