3 Stocks Pushing The Specialty Retail Industry Lower

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

The Specialty Retail industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.1%. Laggards within the Specialty Retail industry included Sport Chalet ( SPCHA), down 2.8%, China Auto Logistics ( CALI), down 3.1%, DGSE Companies ( DGSE), down 6.5%, Dover Saddlery ( DOVR), down 1.5% and Mecox Lane ( MCOX), down 2.8%.

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

Dover Saddlery ( DOVR) is one of the companies that pushed the Specialty Retail industry lower today. Dover Saddlery was down $0.08 (1.5%) to $5.10 on heavy volume. Throughout the day, 24,500 shares of Dover Saddlery exchanged hands as compared to its average daily volume of 10,200 shares. The stock ranged in price between $5.10-$5.12 after having opened the day at $5.12 as compared to the previous trading day's close of $5.18.

Dover Saddlery, Inc. operates as a specialty retailer and omni-channel marketer of equestrian products in the United States. The company offers a selection of products required to own, ride, train, and compete with a horse. Dover Saddlery has a market cap of $27.8 million and is part of the basic materials sector. Shares are down 3.2% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Dover Saddlery as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from TheStreet Ratings analysis on DOVR go as follows:

  • DOVR's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 9.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Compared to its closing price of one year ago, DOVR's share price has jumped by 30.83%, exceeding the performance of the broader market during that same time frame. Although DOVR had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • 37.72% is the gross profit margin for DOVER SADDLERY INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -2.75% trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Specialty Retail industry average. The net income has decreased by 0.9% when compared to the same quarter one year ago, dropping from -$0.54 million to -$0.54 million.
  • Net operating cash flow has significantly decreased to -$7.09 million or 81.24% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Dover Saddlery 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.

At the close, China Auto Logistics ( CALI) was down $0.06 (3.1%) to $1.86 on average volume. Throughout the day, 33,348 shares of China Auto Logistics exchanged hands as compared to its average daily volume of 27,000 shares. The stock ranged in price between $1.84-$1.93 after having opened the day at $1.91 as compared to the previous trading day's close of $1.92.

China Auto Logistics Inc. sells and trades in imported automobiles in the People's Republic of China. It operates in five segments: Sales of Automobiles, Financing Services, Web-Based Advertising, Automobile Value Added Services, and Auto Mall Management Services. China Auto Logistics has a market cap of $7.7 million and is part of the basic materials sector. Shares are down 46.1% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates China Auto Logistics 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, generally high debt management risk, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on CALI go as follows:

  • The debt-to-equity ratio is very high at 3.22 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, CALI maintains a poor quick ratio of 0.77, which illustrates the inability to avoid short-term cash problems.
  • 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 Specialty Retail industry and the overall market, CHINA AUTO LOGISTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA AUTO LOGISTICS INC is currently extremely low, coming in at 1.36%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.25% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$12.77 million or 307.94% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • CHINA AUTO LOGISTICS INC 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. During the past fiscal year, CHINA AUTO LOGISTICS INC reported lower earnings of $0.16 versus $0.67 in the prior year.

You can view the full analysis from the report here: China Auto Logistics 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.

Sport Chalet ( SPCHA) was another company that pushed the Specialty Retail industry lower today. Sport Chalet was down $0.03 (2.8%) to $1.11 on heavy volume. Throughout the day, 25,001 shares of Sport Chalet exchanged hands as compared to its average daily volume of 14,700 shares. The stock ranged in price between $1.09-$1.17 after having opened the day at $1.15 as compared to the previous trading day's close of $1.14.

Sport Chalet, Inc. operates as a specialty sporting goods retailer in the United States. Sport Chalet has a market cap of $14.0 million and is part of the basic materials sector. Shares are up 4.8% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates Sport Chalet 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, generally high debt management risk, disappointing return on equity and poor profit margins.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on SPCHA go as follows:

  • The debt-to-equity ratio is very high at 9.82 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 0.06, which clearly demonstrates the inability to cover short-term cash 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 Specialty Retail industry and the overall market, SPORT CHALET INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SPORT CHALET INC is rather low; currently it is at 24.02%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -7.13% is significantly below that of the industry average.
  • SPORT CHALET INC 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. During the past fiscal year, SPORT CHALET INC reported poor results of -$0.71 versus -$0.23 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 146.6% when compared to the same quarter one year ago, falling from -$2.31 million to -$5.71 million.

You can view the full analysis from the report here: Sport Chalet 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.

More from Markets

Asian Markets Decline in Morning Trading

Asian Markets Decline in Morning Trading

Verizon Proves Resilient in Sell-Off; Decoding the Facebook Short -- ICYMI

Verizon Proves Resilient in Sell-Off; Decoding the Facebook Short -- ICYMI

Three Big Factors That Rocked the Stock Market Tuesday

Three Big Factors That Rocked the Stock Market Tuesday

Dow Tumbles Over 400 Points; S&P 500 and Nasdaq Also Finish Lower

Dow Tumbles Over 400 Points; S&P 500 and Nasdaq Also Finish Lower

Caterpillar Bulldozes Industrial Sector With Bad News on Earnings Call

Caterpillar Bulldozes Industrial Sector With Bad News on Earnings Call