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The Retail industry as a whole closed the day down 1.4% versus the S&P 500, which was down 0.9%. Laggards within the Retail industry included Appliance Recycling Centers Of America ( ARCI), down 4.3%, China Nepstar Chain Drugstore ( NPD), down 2.5%, Wet Seal ( WTSL), down 7.7%, Liberator Medical Holdings ( LBMH), down 4.7% and China Jo-Jo Drugstores ( CJJD), down 4.9%.

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

Wet Seal ( WTSL) is one of the companies that pushed the Retail industry lower today. Wet Seal was down $0.00 (7.7%) to $0.06 on average volume. Throughout the day, 2,918,057 shares of Wet Seal exchanged hands as compared to its average daily volume of 2,233,300 shares. The stock ranged in price between $0.05-$0.06 after having opened the day at $0.06 as compared to the previous trading day's close of $0.06.

The Wet Seal, Inc., a multi-channel specialty retailer, operates stores that sell fashionable and contemporary apparel and accessory items for female consumers. It operates in two segments, Wet Seal and Arden B. Wet Seal has a market cap of $6.0 million and is part of the services sector. Shares are down 8.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Wet Seal a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Wet Seal as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, 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 WTSL 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 141.1% when compared to the same quarter one year ago, falling from -$14.91 million to -$35.94 million.
  • The gross profit margin for WET SEAL INC is rather low; currently it is at 15.66%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -34.46% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$16.05 million or 132.15% 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 97.73%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 186.66% 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.
  • WET SEAL 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, WET SEAL INC continued to lose money by earning -$0.45 versus -$1.28 in the prior year. For the next year, the market is expecting a contraction of 92.2% in earnings (-$0.87 versus -$0.45).

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

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At the close, China Nepstar Chain Drugstore ( NPD) was down $0.04 (2.5%) to $1.54 on average volume. Throughout the day, 59,858 shares of China Nepstar Chain Drugstore exchanged hands as compared to its average daily volume of 78,500 shares. The stock ranged in price between $1.51-$1.56 after having opened the day at $1.55 as compared to the previous trading day's close of $1.58.

China Nepstar Chain Drugstore Ltd., through its subsidiaries, owns and operates a retail drugstore chain in China. China Nepstar Chain Drugstore has a market cap of $152.0 million and is part of the services sector. Shares are unchanged year-to-date as of the close of trading on Monday. Currently there are no analysts who rate China Nepstar Chain Drugstore a buy, 1 analyst rates it a sell, and none rate it a hold.

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TheStreet Ratings rates China Nepstar Chain Drugstore as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on NPD go as follows:

  • NPD's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 2.9%. 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.
  • NPD 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. Despite the fact that NPD's debt-to-equity ratio is low, the quick ratio, which is currently 0.65, displays a potential problem in covering short-term cash needs.
  • 40.40% is the gross profit margin for CHINA NEPSTAR CHAIN DRUG-ADS which we consider to be strong. Regardless of NPD'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 -1.77% trails 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 Food & Staples Retailing industry. The net income has significantly decreased by 185.7% when compared to the same quarter one year ago, falling from -$0.75 million to -$2.14 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 NEPSTAR CHAIN DRUG-ADS's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: China Nepstar Chain Drugstore 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.

Appliance Recycling Centers Of America ( ARCI) was another company that pushed the Retail industry lower today. Appliance Recycling Centers Of America was down $0.12 (4.3%) to $2.66 on heavy volume. Throughout the day, 154,899 shares of Appliance Recycling Centers Of America exchanged hands as compared to its average daily volume of 16,300 shares. The stock ranged in price between $2.66-$2.84 after having opened the day at $2.80 as compared to the previous trading day's close of $2.78.

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 $15.4 million and is part of the services sector. Shares are up 1.1% year-to-date as of the close of trading on Monday.

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 good cash flow from operations. 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 9.8%. 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 debt-to-equity ratio is somewhat low, currently at 0.81, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.75 is somewhat weak and could be cause for future problems.
  • The gross profit margin for APPLIANCE RECYCLING CTR AMER is currently lower than what is desirable, coming in at 26.86%. 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.