Struggling retailers Sears Holdings (SHLD) and Gap (GPS) - Get Report report earnings on Thursday, capping off what's been a difficult year for both.

While some retailers are reporting soft numbers due to warmer than normal weather in the last quarter, Sears and Gap have much deeper problems.

One expert doesn't expect to see any signs that things are getting better when Sears reports.

"It's a very sad story at Sears. It doesn't even have one analyst that recommends it as a buy. Credit is horrible. It already reported same-store sales weaker than expectations," said Jharonne Martis, Director of Consumer Research at Thomson Reuters. "There's no good news there."

Martis said questions continue to be raised by just how viable the company is long-term. Sears stock has lost 78% of its value in the last five years.

Analysts polled by Thomson Reuters expect a more than 10% decline in revenue for Sears in the fourth quarter, with its loss widening to $1.36 per share.

Gap is also expected to report a drop in revenue, along with a decline in earnings. According to analysts surveyed by Thomson Reuters, revenue will decline by more than 5.5%.

The company missed analysts' targets for earnings and revenue last year, and monthly same-store sales also declined.

Martis said the company took a further hit when the head of its once strong performing Old Navy division left the company. Stefan Larsson, who had been president of Old Navy, departed for a job at Ralph Lauren (RL) - Get Report

"Unfortunately since he left, even Old Navy is struggling, which is why all analysts polled by Thomson Reuters have become bearish on the company," said Martis.

On CNBC's "Mad Money" this week, TheStreet's Jim Cramer said there's simply no reason to own Gap, which he calls "toxic." Gap stock lost 41% of its value in 2015, but has gained ground since the start of this year.