BUZZ-Dillard's drops with other retailers; UBS says downside not "fully priced"

** Shares in Dillard's DDS.N down 8% on Monday, underperforming weak retailers, included in latest UBS research in less favorable group of stocks

** While UBS analysts say in their industry outlook piece that they are more bullish this month than last on the softlines sector they sounded more cautious about stocks including Dillard's, which they rate 'sell'

** According to the note, UBS says Columbia Sportswear COLM.O, Macy's M.N, Dillard's, and Kohl's KSS.N have "well below average growth where the downside isn't fully priced in."

** Dillard's shares, last trading at $609.40, have risen ~47% so far this year

** KSS down 5.7% on Monday at $21.87 and up ~55% YTD, while Macy's was off 3.4% at $23.03 on the day and has risen ~36% YTD. However, COLM shares were up 1.9% on the day but showing a ~33% YTD loss

** In a separate conversation about retail stocks Bokeh Capital Partners founder and CIO Kim Caughey Forrest said "It's tough to be a general lines department store now"

** "The holiday season is when winners and losers are accentuated in retail. Underperforming stores generally don't spontaneously heal the flaws during the crush of holiday spending," Forrest added

(Reporting by Sinead Carew)

((sinead.carew@thomsonreuters.com))