02:49 PM EST, 12/12/2024 (MT Newswires) -- Macy's (M) earnings per share are expected to decline at a compound annual growth rate of -12% from fiscal 2023 to 2028 as recent initiatives to stop market share losses are insufficient and guidance reductions in gross margin further reinforce a negative outlook, UBS Securities said in a note Thursday.

The analysts said they view Macy's as a "share loss stock," as the company continues to face challenges versus peers around "price, product, and service," which "should lead to continuous share losses." The company is losing market share despite increasing fiscal 2024 comparable sales guidance and continues to face more pressure than its peers, according to the note.

The analysts said they expect "EPS misses to continue," following the company's fiscal Q3 earnings and revenue, which decreased year-over-year.

"Our fiscal year 2026 earnings per share estimate is 30% below consensus as we anticipate the impact on earnings from market share loss compounds in out-years," the firm added.

The brokerage lowered its price target on Macy's stock to $9 from $10 and reiterated a sell rating on the stock.

Price: 16.64, Change: +0.06, Percent Change: +0.36