Kohl's (KSS) Q3 sales trends were "solid," but the results are unlikely to prompt significant revisions to analyst estimates or meaningfully move the stock's valuation, UBS Securities said.
The investment firm said in a Wednesday research note that it sees a balanced upside/downside skew heading into the earnings report.
Kohl's is scheduled to report its Q3 results on Nov. 24. UBS expects quarterly EPS of $0.02, 2 cents above Wall Street estimates.
Industry data shows that the company's observed Q3 sales increased 4% year-on-year, representing a 55-basis-point sequential deceleration from the previous quarter. Data further showed that searches for Kohl's increased 29% year-on-year, improving about 300 basis points sequentially, according to the note.
The investment firm expects the company to maintain its fiscal 2026 guidance for comparable sales of -1.5% to flat and EPS of $1.80 to $2.40, reflecting continued conservatism around consumer demand heading into the holiday season.
UBS has a sell rating on the stock, with a $9 price target.
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