3 Stocks Pushing The Retail Industry Lower

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The Retail industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.1%. Laggards within the Retail industry included QKL Stores ( QKLS), down 1.9%, ALCO Stores ( ALCS), down 3.0%, China Jo-Jo Drugstores ( CJJD), down 4.6%, dELiA*s ( DLIA), down 2.6% and Cache ( CACH), down 5.1%.

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

dELiA*s ( DLIA) is one of the companies that pushed the Retail industry lower today. dELiA*s was down $0.02 (2.6%) to $0.60 on average volume. Throughout the day, 391,171 shares of dELiA*s exchanged hands as compared to its average daily volume of 458,100 shares. The stock ranged in price between $0.58-$0.61 after having opened the day at $0.61 as compared to the previous trading day's close of $0.62.

dELiA*s, Inc. operates as a multi-channel retail company, primarily marketing to teenage girls in the United States. The company sells various product categories to consumers through its Website, direct mail catalogs, and retail stores. dELiA*s has a market cap of $44.1 million and is part of the services sector. Shares are down 30.1% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates dELiA*s 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, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on DLIA 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 Internet & Catalog Retail industry. The net income has significantly decreased by 26.0% when compared to the same quarter one year ago, falling from -$9.22 million to -$11.61 million.
  • The debt-to-equity ratio of 1.25 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, DLIA has a quick ratio of 0.57, this demonstrates the lack of ability of the company to cover short-term liquidity 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 Internet & Catalog Retail industry and the overall market, DELIAS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DELIAS INC is currently lower than what is desirable, coming in at 27.59%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -44.78% is significantly below that of the industry average.
  • Net operating cash flow has declined marginally to -$14.91 million or 4.19% when compared to the same quarter last year. Despite a decrease in cash flow DELIAS INC is still fairing well by exceeding its industry average cash flow growth rate of -16.40%.

You can view the full analysis from the report here: dELiA*s Ratings Report

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At the close, China Jo-Jo Drugstores ( CJJD) was down $0.07 (4.6%) to $1.45 on light volume. Throughout the day, 27,235 shares of China Jo-Jo Drugstores exchanged hands as compared to its average daily volume of 40,100 shares. The stock ranged in price between $1.42-$1.54 after having opened the day at $1.52 as compared to the previous trading day's close of $1.52.

China Jo-Jo Drugstores, Inc. operates as a retailer and distributor of pharmaceutical and other healthcare products in the People's Republic of China. China Jo-Jo Drugstores has a market cap of $22.5 million and is part of the services sector. Shares are up 58.3% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates China Jo-Jo Drugstores 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, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on CJJD go as follows:

  • CHINA JO-JO DRUGSTORES INC's earnings per share declined by 48.6% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINA JO-JO DRUGSTORES INC reported poor results of -$1.81 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 Food & Staples Retailing industry. The net income has significantly decreased by 55.1% when compared to the same quarter one year ago, falling from -$9.85 million to -$15.29 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 Food & Staples Retailing industry and the overall market, CHINA JO-JO DRUGSTORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA JO-JO DRUGSTORES INC is currently extremely low, coming in at 3.64%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -94.77% is significantly below that of the industry average.
  • Net operating cash flow has declined marginally to $1.37 million or 6.22% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: China Jo-Jo Drugstores Ratings Report

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QKL Stores ( QKLS) was another company that pushed the Retail industry lower today. QKL Stores was down $0.06 (1.9%) to $3.14 on light volume. Throughout the day, 1,885 shares of QKL Stores exchanged hands as compared to its average daily volume of 2,800 shares. The stock ranged in price between $2.85-$3.46 after having opened the day at $3.46 as compared to the previous trading day's close of $3.20.

QKL Stores Inc., through its subsidiaries, engages in the operation of retail chain stores in the People's Republic of China. The company's supermarkets and hypermarkets sell a selection of merchandise, including groceries, fresh food, and non-food items. QKL Stores has a market cap of $4.1 million and is part of the services sector. Shares are down 23.8% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates QKL Stores as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on QKLS 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 Food & Staples Retailing industry. The net income has significantly decreased by 858.3% when compared to the same quarter one year ago, falling from $0.40 million to -$3.06 million.
  • The gross profit margin for QKL STORES INC is rather low; currently it is at 17.12%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.55% trails that of the industry average.
  • Net operating cash flow has decreased to $18.00 million or 25.83% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • QKLS's debt-to-equity ratio of 0.88 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.47 is very low and demonstrates very weak liquidity.
  • The share price of QKL STORES INC has not done very well: it is down 16.43% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

You can view the full analysis from the report here: QKL Stores Ratings Report

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