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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

The Retail industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.6%. Laggards within the Retail industry included

ALCO Stores

(

ALCS

), down 4.7%,

Gaiam

(

GAIA

), down 1.6%,

Pacific Sunwear

(

PSUN

), down 4.8%,

Destination XL Group

(

TheStreet Recommends

DXLG

), down 1.7% and

Shoe Carnival

(

SCVL

), down 1.7%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Destination XL Group

(

DXLG

) is one of the companies that pushed the Retail industry lower today. Destination XL Group was down $0.09 (1.7%) to $5.19 on light volume. Throughout the day, 45,059 shares of Destination XL Group exchanged hands as compared to its average daily volume of 206,900 shares. The stock ranged in price between $5.16-$5.25 after having opened the day at $5.21 as compared to the previous trading day's close of $5.28.

Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall men's apparel in the United States, England, and Canada. It operates in two segments, Retail and Direct. Destination XL Group has a market cap of $263.2 million and is part of the services sector. Shares are down 19.3% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Destination XL Group a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates

Destination XL Group

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on DXLG go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 449.8% when compared to the same quarter one year ago, falling from $1.01 million to -$3.54 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, DESTINATION XL GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$13.90 million or 147.29% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite currently having a low debt-to-equity ratio of 0.51, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.15 is very low and demonstrates very weak liquidity.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.11%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 450.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

You can view the full analysis from the report here:

Destination XL Group Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close,

Pacific Sunwear

(

PSUN

) was down $0.10 (4.8%) to $2.00 on average volume. Throughout the day, 417,178 shares of Pacific Sunwear exchanged hands as compared to its average daily volume of 385,600 shares. The stock ranged in price between $2.00-$2.10 after having opened the day at $2.08 as compared to the previous trading day's close of $2.10.

Pacific Sunwear of California, Inc., together with its subsidiaries, operates as a specialty retailer in the action sports, fashion, and music influences of the California lifestyle. Pacific Sunwear has a market cap of $144.0 million and is part of the services sector. Shares are down 37.1% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Pacific Sunwear a buy, no analysts rate it a sell, and 5 rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates

Pacific Sunwear

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on PSUN go as follows:

  • The debt-to-equity ratio is very high at 10.82 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.16, which clearly demonstrates the inability to cover short-term cash needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, PACIFIC SUNWEAR CALIF INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PACIFIC SUNWEAR CALIF INC is currently lower than what is desirable, coming in at 29.43%. Regardless of PSUN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, PSUN's net profit margin of -6.07% significantly underperformed when compared to the industry average.
  • PSUN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 49.89%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • PACIFIC SUNWEAR CALIF INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PACIFIC SUNWEAR CALIF INC continued to lose money by earning -$0.71 versus -$0.78 in the prior year. This year, the market expects an improvement in earnings (-$0.28 versus -$0.71).

You can view the full analysis from the report here:

Pacific Sunwear Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Gaiam

(

GAIA

) was another company that pushed the Retail industry lower today. Gaiam was down $0.11 (1.6%) to $6.70 on light volume. Throughout the day, 19,853 shares of Gaiam exchanged hands as compared to its average daily volume of 89,700 shares. The stock ranged in price between $6.66-$6.84 after having opened the day at $6.76 as compared to the previous trading day's close of $6.81.

Gaiam has a market cap of $125.0 million and is part of the services sector. Shares are up 1.2% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Gaiam a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on GAIA go as follows:

You can view the full analysis from the report here:

Gaiam Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.