Kohl's (KSS) continues to lose market share to alternative retail channels as it fails to convert improving consumer fundamentals into demand, UBS Securities said in a Monday note.
Purchase intentions for the next 12 months remain in the red at -11% compared with the survey average of a 14% growth, pointing to an ongoing share loss instead of a cyclical weakness, the brokerage said. Brand erosion also continues even amid a "supportive spending environment," UBS added.
The investment firm also said it expects weak sales and fixed-cost deleverage to weigh on consensus forecasts for Kohl's earnings per share over the next year, projecting a 2.2% compound annual growth rate for EPS through 2030.
UBS has a sell rating on Kohl's, with a $9 price target.
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