The Retail industry as a whole closed the day down 0.1% versus the S&P 500, which was up 0.2%. Laggards within the Retail industry included

Cencosud

(

CNCO

), down 1.8%,

Fairway Group Holdings

(

FWM

), down 4.8%,

Bon-Ton Stores

(

BONT

), down 1.8%,

Christopher & Banks

(

CBK

), down 4.1% and

Sears Hometown & Outlet Stores

(

SHOS

), down 5.3%.

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

Bon-Ton Stores

(

BONT

) is one of the companies that pushed the Retail industry lower today. Bon-Ton Stores was down $0.07 (1.8%) to $3.76 on light volume. Throughout the day, 79,135 shares of Bon-Ton Stores exchanged hands as compared to its average daily volume of 237,200 shares. The stock ranged in price between $3.75-$3.90 after having opened the day at $3.86 as compared to the previous trading day's close of $3.83.

The Bon-Ton Stores, Inc., through its subsidiaries, operates department stores in the United States. The company's stores offer brand-name fashion apparel and accessories for women, men, and children, as well as cosmetics, home furnishings, and other goods. Bon-Ton Stores has a market cap of $71.4 million and is part of the services sector. Shares are down 48.3% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Bon-Ton Stores a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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TheStreet Ratings rates

Bon-Ton Stores

as a

sell

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

Highlights from TheStreet Ratings analysis on BONT go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Multiline Retail industry average, but is greater than that of the S&P 500. The net income has decreased by 8.1% when compared to the same quarter one year ago, dropping from -$31.51 million to -$34.07 million.
  • The debt-to-equity ratio is very high at 17.55 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 0.07, which clearly demonstrates the inability to cover short-term cash needs.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Multiline Retail industry and the overall market, BON-TON STORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$17.83 million or 12.82% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Looking at the price performance of BONT's shares over the past 12 months, there is not much good news to report: the stock is down 59.51%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier 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.

You can view the full analysis from the report here:

Bon-Ton Stores Ratings Report

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At the close,

Fairway Group Holdings

(

FWM

) was down $0.11 (4.8%) to $2.20 on light volume. Throughout the day, 230,010 shares of Fairway Group Holdings exchanged hands as compared to its average daily volume of 314,500 shares. The stock ranged in price between $2.18-$2.35 after having opened the day at $2.31 as compared to the previous trading day's close of $2.31.

Fairway Group Holdings Corp., together with its subsidiaries, operates as a food retailer in the United States. Fairway Group Holdings has a market cap of $66.8 million and is part of the services sector. Shares are down 26.7% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Fairway Group Holdings a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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TheStreet Ratings rates

Fairway Group Holdings

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on FWM go as follows:

  • The gross profit margin for FAIRWAY GROUP HOLDINGS is currently lower than what is desirable, coming in at 32.21%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -4.29% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $1.20 million or 90.59% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • FWM'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 59.94%, 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.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.2%. Since the same quarter one year prior, revenues slightly dropped by 0.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • FAIRWAY GROUP HOLDINGS's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, FAIRWAY GROUP HOLDINGS continued to lose money by earning -$1.07 versus -$1.93 in the prior year. This year, the market expects an improvement in earnings (-$0.78 versus -$1.07).

You can view the full analysis from the report here:

Fairway Group Holdings Ratings Report

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Cencosud

(

CNCO

) was another company that pushed the Retail industry lower today. Cencosud was down $0.11 (1.8%) to $5.86 on heavy volume. Throughout the day, 105,746 shares of Cencosud exchanged hands as compared to its average daily volume of 47,300 shares. The stock ranged in price between $5.80-$5.98 after having opened the day at $5.93 as compared to the previous trading day's close of $5.97.

Cencosud S.A., together with its subsidiaries, operates as a multi-brand retailer in Argentina, Brazil, Chile, Peru, and Colombia. Cencosud has a market cap of $5.6 billion and is part of the services sector. Shares are down 22.4% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Cencosud a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates

Cencosud

as a

hold

. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

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Highlights from TheStreet Ratings analysis on CNCO go as follows:

  • The debt-to-equity ratio is somewhat low, currently at 0.77, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.40 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • CNCO, with its decline in revenue, slightly underperformed the industry average of 4.2%. Since the same quarter one year prior, revenues slightly dropped by 6.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for CENCOSUD SA is currently lower than what is desirable, coming in at 28.37%. Regardless of CNCO's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.82% trails the industry average.
  • CENCOSUD SA's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CENCOSUD SA reported lower earnings of $0.28 versus $0.50 in the prior year. For the next year, the market is expecting a contraction of 70.3% in earnings ($0.08 versus $0.28).
  • 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 Food & Staples Retailing industry. The net income has significantly decreased by 45.9% when compared to the same quarter one year ago, falling from $65.11 million to $35.21 million.

You can view the full analysis from the report here:

Cencosud Ratings Report

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