Pity poor Sears Holdings (SHLD). Takeover master Eddie Lampert gobbled up both Sears and Kmart in 2005, merging them into Sears Holdings. At the time, investors were licking their lips, expecting stellar returns from the legendary value investor. Instead, Sears Holdings’ comeback is on hold. It has endured several years of crumbling earnings and revenues, along with a plunging stock price.

So what’s the problem? Some analysts say that Lampert has underinvested in Sears stores. The Sears chain, they add, is woefully outdated and desperately needs a makeover.

There are signs of progress, though. Sears Holdings appointed new CEO Lou D’Ambrosio early this year. And the retailer started leasing space within its owned stores to ramp up productivity. It also began adding beauty departments to some Sears’s stores and even enlisted the Kardashian sisters to promote an exclusive line of clothing.

So far, Sears Holdings is digging a deeper hole, though. Fiscal second quarter sales slumped to $10.3 billion versus $10.5 billion a year ago. Kmart’s comparable store sales were flat; Sears’ declined 1.2 percent. “We are not satisfied with our results and are taking actions to turn around our performance,” said D’Ambrosio.

New CEO, new catalyst

Of the five analysts followed by Thomson/First Call, no one has a strong buy recommendation on Sears Holdings and only one has a buy, with one hold and three underperforms.

S&P analysts have a hold rating on the stock, citing its long record of inconsistent sales and earnings. Analysts also add that D’Ambrosio’s appointment could give Sears Holdings a much-needed boost, though crafting a turnaround plan could take time.

The company reports next on Nov. 17.