Kohl's Continues to Lose Market Share, Faces Persistent Top-Line Challenges, UBS Says

01:37 PM EDT, 08/27/2026 (MT Newswires) -- Kohl's (KSS) continues to lose market share to other retail channels, particularly off-price retailers, as weak sales and fixed-cost deleverage pressure earnings, UBS Securities said. The investment firm said in a Wednesday note that it expects consensus EPS estimates to move lower over the next year and sentiment to remain muted. Kohl's comparable sales declined 0.9% in Q2, compared with growth of 1% at Marmaxx, 7% at HomeGoods and 10% at Ross Stores, suggesting continued share losses despite sequential improvement in sales trends, according to the research note. Proprietary brand sales growth slowed to 3% from 6% in Q1, while Sephora sales declined 4% in Q2. UBS said limited near-term visibility at Sephora remains a drag. UBS raised its 2026 EPS estimate to $2.15 from $1.35, largely reflecting one-time tariff refunds and other benefits, while leaving fiscal 2027 and 2028 estimates unchanged. UBS maintained its sell rating and a $9 price target on the stock. Price: 18.09, Change: +0.15, Percent Change: +0.84