3 Stocks Pushing The Specialty Retail Industry Lower

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The Specialty Retail industry as a whole closed the day down 1.4% versus the S&P 500, which was down 0.9%. Laggards within the Specialty Retail industry included DGSE Companies ( DGSE), down 4.8%, Dover Saddlery ( DOVR), down 2.1%, Mecox Lane ( MCOX), down 2.8%, Trans World Entertainment ( TWMC), down 1.8% and Lentuo International ( LAS), down 1.7%.

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

Trans World Entertainment ( TWMC) is one of the companies that pushed the Specialty Retail industry lower today. Trans World Entertainment was down $0.06 (1.8%) to $3.34 on average volume. Throughout the day, 44,657 shares of Trans World Entertainment exchanged hands as compared to its average daily volume of 41,200 shares. The stock ranged in price between $3.32-$3.44 after having opened the day at $3.38 as compared to the previous trading day's close of $3.40.

Trans World Entertainment Corporation, together with its subsidiaries, operates as a specialty retailer of entertainment products, including video, music, electronics, trend items, video games, accessories, and related products through its retail stores and e-commerce sites. Trans World Entertainment has a market cap of $108.5 million and is part of the services sector. Shares are down 23.1% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates Trans World Entertainment as a buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on TWMC go as follows:

  • 37.58% is the gross profit margin for TRANS WORLD ENTMT CORP which we consider to be strong. Regardless of TWMC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.44% trails the industry average.
  • TWMC, with its decline in revenue, slightly underperformed the industry average of 2.0%. Since the same quarter one year prior, revenues slightly dropped by 7.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.17%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 120.00% compared to the year-earlier quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.
  • TRANS WORLD ENTMT CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, TRANS WORLD ENTMT CORP reported lower earnings of $0.26 versus $1.05 in the prior year.
  • 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 124.2% when compared to the same quarter one year ago, falling from $1.60 million to -$0.39 million.

You can view the full analysis from the report here: Trans World Entertainment Ratings Report

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