11:36 AM EDT, 03/12/2025 (MT Newswires) -- Kohl's (KSS) will likely continue to lose market share, see top-line challenges amid a choppy consumer spending environment, and its weaker-than-expected earnings could pressure the stock in the next 12 months, UBS said in a note Wednesday.

UBS analysts said the market is underestimating the impact of other retail channels on the company's earnings.

Kohl's is estimated to have lost about one-third of its market share in the last 10 years as more consumers shift to online and look for retailers with better value-for-money propositions, according to the note.

New Chief Executive Ashley Buchanan is looking to improve the brand's value proposition and might have new ideas to turn around the business, but will be unlikely to drive any meaningful results until fiscal year 2026, the analysts said.

UBS reiterated its sell rating on the stock and cut the price target to $5 from $10.

Shares of Kohl's were down more than 8% in recent trading Wednesday.

Price: 8.38, Change: -0.78, Percent Change: -8.47