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The Retail industry as a whole closed the day down 1.1% versus the S&P 500, which was up 0.1%. Laggards within the Retail industry included Appliance Recycling Centers Of America ( ARCI), down 2.4%, Acorn International ( ATV), down 3.0%, Cache ( CACH), down 8.4%, China Jo-Jo Drugstores ( CJJD), down 6.0% and dELiA*s ( DLIA), down 20.6%.

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

Cache ( CACH) is one of the companies that pushed the Retail industry lower today. Cache was down $0.04 (8.4%) to $0.41 on average volume. Throughout the day, 266,835 shares of Cache exchanged hands as compared to its average daily volume of 227,900 shares. The stock ranged in price between $0.41-$0.46 after having opened the day at $0.42 as compared to the previous trading day's close of $0.45.

Cache, Inc., together with its subsidiaries, operates as a mall-based and online woman's specialty retailer of apparel and accessories in the United States. Cache has a market cap of $14.6 million and is part of the services sector. Shares are down 91.3% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Cache a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Cache 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 generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CACH 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 Specialty Retail industry. The net income has significantly decreased by 32.3% when compared to the same quarter one year ago, falling from -$9.46 million to -$12.52 million.
  • The debt-to-equity ratio is very high at 6.13 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 0.10, 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, CACHE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CACHE INC is currently lower than what is desirable, coming in at 27.13%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -27.17% is significantly below that of the industry average.
  • CACH's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 91.76%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.

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

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At the close, Acorn International ( ATV) was down $0.07 (3.0%) to $2.24 on light volume. Throughout the day, 8,197 shares of Acorn International exchanged hands as compared to its average daily volume of 43,900 shares. The stock ranged in price between $2.18-$2.27 after having opened the day at $2.26 as compared to the previous trading day's close of $2.31.

Acorn International, Inc., an integrated multi-platform marketing company, develops, promotes, and sells a portfolio of proprietary-branded products; and third parties products. The company operates two sales platforms, including integrated direct sales and a nationwide distribution network. Acorn International has a market cap of $64.3 million and is part of the services sector. Shares are up 48.8% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Acorn International 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.

Highlights from TheStreet Ratings analysis on ATV go as follows:

  • ACORN INTERNATIONAL INC -ADR's earnings per share declined by 50.0% 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, ACORN INTERNATIONAL INC -ADR reported poor results of -$1.45 versus -$0.59 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 54.9% when compared to the same quarter one year ago, falling from -$8.70 million to -$13.48 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, ACORN INTERNATIONAL INC -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • 41.43% is the gross profit margin for ACORN INTERNATIONAL INC -ADR which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ATV's net profit margin of -91.20% significantly underperformed when compared to the industry average.
  • ATV, with its very weak revenue results, has greatly underperformed against the industry average of 12.6%. Since the same quarter one year prior, revenues plummeted by 63.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Acorn International Ratings Report

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Appliance Recycling Centers Of America ( ARCI) was another company that pushed the Retail industry lower today. Appliance Recycling Centers Of America was down $0.07 (2.4%) to $2.83 on light volume. Throughout the day, 1,653 shares of Appliance Recycling Centers Of America exchanged hands as compared to its average daily volume of 16,000 shares. The stock ranged in price between $2.83-$2.93 after having opened the day at $2.93 as compared to the previous trading day's close of $2.90.

Appliance Recycling Centers of America, Inc., together with its subsidiaries, sells new household appliances through a chain of company-owned retail stores under the ApplianceSmart name. The company operates in two segments, Recycling and Retail. Appliance Recycling Centers Of America has a market cap of $16.4 million and is part of the services sector. Shares are down 1.1% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Appliance Recycling Centers Of America as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

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Highlights from TheStreet Ratings analysis on ARCI go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, APPLIANCE RECYCLING CTR AMER has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • The gross profit margin for APPLIANCE RECYCLING CTR AMER is currently lower than what is desirable, coming in at 25.85%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.65% trails that of the industry average.
  • 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 51.0% when compared to the same quarter one year ago, falling from $1.13 million to $0.56 million.

You can view the full analysis from the report here: Appliance Recycling Centers Of America 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.