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The Specialty Retail industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.7%. Laggards within the Specialty Retail industry included DGSE Companies ( DGSE), down 2.4%, Mecox Lane ( MCOX), down 2.1%, Charles & Colvard ( CTHR), down 3.2%, West Marine ( WMAR), down 1.9% and Vitacost.com ( VITC), down 3.0%.

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

West Marine ( WMAR) is one of the companies that pushed the Specialty Retail industry lower today. West Marine was down $0.20 (1.9%) to $10.18 on light volume. Throughout the day, 12,023 shares of West Marine exchanged hands as compared to its average daily volume of 58,000 shares. The stock ranged in price between $10.11-$10.42 after having opened the day at $10.35 as compared to the previous trading day's close of $10.38.

West Marine, Inc. operates as a specialty retailer of boating supplies, gear, apparel, footwear, and other water life-related products primarily in the United States. West Marine has a market cap of $256.9 million and is part of the services sector. Shares are down 27.1% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates West Marine a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates West Marine as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on WMAR go as follows:

  • Net operating cash flow has increased to -$27.75 million or 27.74% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.54%.
  • WMAR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.22 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 2.1%. Since the same quarter one year prior, revenues slightly dropped by 0.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Specialty Retail industry. The net income has decreased by 13.2% when compared to the same quarter one year ago, dropping from -$9.73 million to -$11.02 million.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, WMAR has underperformed the S&P 500 Index, declining 12.02% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

You can view the full analysis from the report here: West Marine Ratings Report

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At the close, Charles & Colvard ( CTHR) was down $0.07 (3.2%) to $2.11 on light volume. Throughout the day, 87,864 shares of Charles & Colvard exchanged hands as compared to its average daily volume of 156,800 shares. The stock ranged in price between $2.11-$2.20 after having opened the day at $2.16 as compared to the previous trading day's close of $2.18.

Charles & Colvard, Ltd. manufactures, markets, and distributes moissanite jewels and finished jewelry featuring moissanite worldwide. Charles & Colvard has a market cap of $44.6 million and is part of the services sector. Shares are down 56.8% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Charles & Colvard a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Charles & Colvard 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 disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on CTHR 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 Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 447.4% when compared to the same quarter one year ago, falling from $0.31 million to -$1.06 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 Textiles, Apparel & Luxury Goods industry and the overall market, CHARLES & COLVARD LTD'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 -$0.06 million or 107.13% 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 any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 49.09%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 350.00% compared to 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.
  • CHARLES & COLVARD LTD 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 reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CHARLES & COLVARD LTD swung to a loss, reporting -$0.05 versus $0.22 in the prior year. This year, the market expects an improvement in earnings (-$0.03 versus -$0.05).

You can view the full analysis from the report here: Charles & Colvard Ratings Report

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Mecox Lane ( MCOX) was another company that pushed the Specialty Retail industry lower today. Mecox Lane was down $0.09 (2.1%) to $4.20 on average volume. Throughout the day, 24,067 shares of Mecox Lane exchanged hands as compared to its average daily volume of 16,100 shares. The stock ranged in price between $4.02-$4.21 after having opened the day at $4.20 as compared to the previous trading day's close of $4.29.

Mecox Lane Limited designs and sells apparel, accessories, and home and healthcare products through its online platform and stores in the People's Republic of China. Mecox Lane has a market cap of $62.5 million and is part of the services sector. Shares are up 17.5% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Mecox Lane as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity.

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Highlights from TheStreet Ratings analysis on MCOX go as follows:

  • MECOX LANE LTD's earnings per share declined by 25.0% in the most recent quarter compared to 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, MECOX LANE LTD reported poor results of -$2.20 versus -$1.95 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 Internet & Catalog Retail industry. The net income has significantly decreased by 37.3% when compared to the same quarter one year ago, falling from -$4.23 million to -$5.80 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 Internet & Catalog Retail industry and the overall market, MECOX LANE LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • MCOX, with its decline in revenue, underperformed when compared the industry average of 4.4%. Since the same quarter one year prior, revenues slightly dropped by 8.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • MCOX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.50 is very weak and demonstrates a lack of ability to pay short-term obligations.

You can view the full analysis from the report here: Mecox Lane 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.