Shares of the Kohl's Corporation (KSS  ) slipped into the red on Monday after the company issued guidance that was received poorly by investors.

"Kohl's is undergoing a significant transformation of our business model and brand to be the retailer of choice for the Active and Casual lifestyle." Kohl's CEO Michelle Gass wrote in a press release. "We have laid the foundation for our winning strategy and have started to implement key initiatives that will scale and accelerate our growth in the years ahead."

Kohl's recent guidance calls for "low-single digits percent sales growth" alongside a 7-8% operating margin. EPS growth will be in the "mid-to-high" single-digits as well, with an operating cash flow of $5.5 billion and free cash flows of $2.5 billion throughout 2022-2024. The guidance appears weak to some, including activist investors who want the company to sell.

Calling Kohl's guidance "weak" is a relative usage, given that the company's guidance hasn't actually changed from the previous quarter. Stable and modest growth might be more welcome were activist investors not already disappointed with the company's previous attempts to innovate and expand its presence, and Kohl's wasn't essentially offering more of the same.

Activist investors have pressured Kohl's to consider selling, worried that it was being outperformed by off-mall competitors and even department stores such as Macy's (M  ). The company fielded offers in January but later turned those offers down.

According to the company's guidance, Kohl's solution to its growth lies with the gradual transformation to "active and casual" wear that became wildly popular during the COVID-19 pandemic. As part of this drive, Kohl's seeks to open streamlined, smaller stores to appeal to consumer interests. In addition, the company is hoping to grow its Sephora business to $2 billion in sales.

Getting into active and casual clothing might not be the unicorn-ride-to-victory that Kohl's guidance makes it out to be, especially considering the existing competition from companies like Target (TGT  ), which have dedicated active/casual clothing sections in stores, and a wider range of similar products online. Kohl's could certainly edge into that market, but off-mall companies like Target and in-mall companies Lululemon (LULU  ) won't give up territory easily.

Kohl's shares dropped 12.3% on Monday after the company's recent announcement. While the company's activist investors likely remain unhappy, shares seem to be recovering on Tuesday. Kohl's shares were up 4.1% by noon.