01:21 PM EST, 11/12/2025 (MT Newswires) -- Kohl's (KSS) third-quarter results will likely show a sequential acceleration in sales trends, though it is expected to offer a cautious outlook amid an uncertain economic environment, UBS Securities said in a note e-mailed Wednesday.

The department store chain is scheduled to release its quarterly results on Nov. 25.

Industry data indicate that Kohl's third-quarter sales may have declined 2% year over year, compared with a 5% fall in the previous three-month period, according to UBS analysts, including Jay Sole.

The brokerage is modelling a 6.4% drop in sales year over year to $3.47 billion, which includes a 5.2% fall in comparable sales as the company's core customers remain under pressure.

"Our channel checks suggest that sales trends in (the third quarter) were slightly better than expected," Sole wrote.

The brokerage revised its third-quarter loss estimate to $0.18 from $0.21.

Kohl's is expected to maintain its full-year 2025 EPS guidance at $0.50 to $0.80, the analyst said.

"We anticipate (Kohl's) takes a cautious approach to guiding (the fourth quarter) due to macroeconomic

uncertainty," Sole said. "We think the market has a similar view, although might be slightly more positive than we are."

Kohl's third-quarter results are unlikely to prompt significant revisions to Wall Street's estimates, according to Sole.

"We believe investors have been buying the stock ahead of the print in anticipation of (the company) reporting improving trends but are still bearish on Kohl's long-term growth prospects," Sole said.

UBS has a sell recommendation and a price target of $4.50 on the stock, implying a significant downside from current levels.

"While we see a balanced upside downside skew over the event, we continue to expect (Kohl's) to underperform peers over the (near term)," according to the UBS report.

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