J.C. Penney's steep discounts are going to hurt the retail sector this holiday season, Durbin Captial Portfolio Manager Steve Kernkraut said Thursday.
"I would be very cautious about the retail sector going into the holiday season," he said, citing weak quarterly results from Limited Brands and Buckle, as well as back-to-school sales that were "disappointing."
On CNBC's "Fast Money," Kernkraut said foundering retailer J.C. Penney's efforts to lure back customers would involve severe price-cutting.
(Read more: 'Don't run for cover' from stocks: Joe Terranova)
"The holiday season is going to be horrific for the department stores, the apparel retailers, because Penney's is going to be selling everything 40-50 percent off to get some attention from the consumer. So, you really have to be somewhat of a fool to pay full price at some of the other retailers as a consumer."