Dillard's (DDS) is facing customer attrition, with survey data showing continued losses in shopper loyalty, weaker brand relevance and negative price perception that are likely to weigh on the company's earnings outlook, UBS Securities said Tuesday in a report.

Dillard's customer gain-loss remained negative at minus 7%, marking nine straight survey waves of losses and signaling continued competitive displacement, the report said.

Brand awareness has fallen to 36% from 53% in 2018, while implied conversion remains weak despite a modest recovery in trial and loyalty rates, UBS said.

Pricing remains the top barrier to retention, with net price perception at negative 53% and only 38% of shoppers associating the brand with good value, the report said.

UBS maintained its sell rating on Dillard's stock with a $465 price target.

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