11:06 AM EDT, 03/11/2026 (MT Newswires) -- Kohl's (KSS) earnings outlook remains pressured by ongoing share losses to other retail channels and continued weak sales, with the market likely underestimating the impact, UBS Securities said.

The brokerage said in a Tuesday note that Kohl's fiscal 2026 earnings per share guidance of $1 to $1.6 implies a year-over-year decline of up to 38%, with comparable sales expected between negative 2% and flat. UBS said reaching the high end would likely require a strong Q4 rebound amid ongoing share losses and weak traffic.

The investment firm revised its fiscal 2026 EPS estimate to $1.25 from $1.05 following the company's Q4 beat. UBS said its fiscal 2026 and 2027 EPS estimates remain below consensus despite modest upward revisions reflecting cost discipline.

It expects Kohl's earnings before interest and tax margin to remain weak, forecasting about 3% by 2030 as online competition and value-focused consumer trends pressure performance.

Kohl's initiatives such as Sephora shop-in-shops, omni-channel upgrades and loyalty program changes could provide some upside. However, secular headwinds and a slow sales recovery may limit sustained growth.

UBS maintained its sell rating on the stock but raised its price target to $8 from $7.

Shares of Kohl's were down more than 4% in Wednesday trading.

Price: 13.95, Change: -0.63, Percent Change: -4.32