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Retail Stock Losers: Lululemon, Borders

Retail stocks are falling as investors remain uncertain about a consumer recovery.



) -- Retail stocks are in the red as investors remain skittish heading into September.

This week the market will receive some important benchmark numbers, including unemployment data and retail same-store sales results for August.

While the Commerce Department reported on Monday that consumer spending rose 0.4%, double economists' estimates, its wasn't enough to placate concerns over the confidence level and stability of the American consumer. As a result, the S&P Retail Index is falling 1.4% to 400.33 in Monday afternoon trading.

Lululemon Athletica

(LULU) - Get lululemon athletica inc. Report

is the day's biggest loser, tanking by 8.8% to $32.39 after it was cut to underperform by an analyst.

Jeffries & Co. analyst Taposh Bari said the yoga-inspired retailer is increasing inventory and investments at a time when the U.S. retail sector remains choppy. Bari also lowered the price target on the stock to $30 from $38 a share.



is dropping 5.1% to $1.12 ahead of its second-quarter earnings report due out on Wednesday. Last year the company lost 21 cents a share before one-time items, on revenue of $616.8 million.

Investors will be keenly interested in the success of the Borders e-reader strategy, after the company launched its electronic bookstore in July.

Last week, rival

Barnes & Noble

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TheStreet Recommends

(BKS) - Get Barnes & Noble, Inc. Report

reported a

wider-than-expected loss in its second quarter

. Excluding items, Barnes & Noble lost $1.02 per share, significantly more than the 80-cent loss analysts predicted.

Barnes & Noble is also in the midst of a heated proxy battle with billionaire investor Ron Burkle, all while attempting to put the company up for sale.

-- Written by Jeanine Poggi in New York.

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