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The Specialty Retail industry as a whole closed the day down 1.8% versus the S&P 500, which was down 0.9%. Laggards within the Specialty Retail industry included Books-A-Million ( BAMM), down 2.9%, Mecox Lane ( MCOX), down 2.8%, Charles & Colvard ( CTHR), down 4.1%, Lentuo International ( LAS), down 13.6% and Rush ( RUSHB), down 4.3%.

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

Charles & Colvard ( CTHR) is one of the companies that pushed the Specialty Retail industry lower today. Charles & Colvard was down $0.07 (4.1%) to $1.63 on light volume. Throughout the day, 67,779 shares of Charles & Colvard exchanged hands as compared to its average daily volume of 103,900 shares. The stock ranged in price between $1.63-$1.74 after having opened the day at $1.74 as compared to the previous trading day's close of $1.70.

Charles & Colvard, Ltd. manufactures, markets, and distributes moissanite jewels and finished jewelry featuring moissanite worldwide. Charles & Colvard has a market cap of $36.0 million and is part of the services sector. Shares are down 7.6% 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 feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CTHR go as follows:

  • 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. Earnings per share have declined over the last two years. We anticipate that this should continue 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. For the next year, the market is expecting a contraction of 960.0% in earnings (-$0.53 versus -$0.05).
  • 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 153.2% when compared to the same quarter one year ago, falling from -$1.21 million to -$3.07 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.
  • The gross profit margin for CHARLES & COLVARD LTD is currently lower than what is desirable, coming in at 33.75%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -67.80% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 67.34%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 150.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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

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At the close, Mecox Lane ( MCOX) was down $0.10 (2.8%) to $3.46 on light volume. Throughout the day, 13,216 shares of Mecox Lane exchanged hands as compared to its average daily volume of 22,300 shares. The stock ranged in price between $3.46-$3.49 after having opened the day at $3.48 as compared to the previous trading day's close of $3.56.

Mecox Lane Limited designs and sells health and beauty products through various retail channels in the People's Republic of China. It offers beauty and healthcare products, including skin care, fragrance, cosmetics, and other personal care products. Mecox Lane has a market cap of $45.6 million and is part of the services sector. Shares are down 5.9% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Mecox Lane as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on MCOX go as follows:

  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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.
  • In its most recent trading session, MCOX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
  • MECOX LANE LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, MECOX LANE LTD reported poor results of -$2.20 versus -$1.95 in the prior year.
  • The revenue fell significantly faster than the industry average of 13.0%. Since the same quarter one year prior, revenues fell by 38.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for MECOX LANE LTD is rather high; currently it is at 63.84%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.82% trails the industry average.

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

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Books-A-Million ( BAMM) was another company that pushed the Specialty Retail industry lower today. Books-A-Million was down $0.05 (2.9%) to $1.65 on light volume. Throughout the day, 1,405 shares of Books-A-Million exchanged hands as compared to its average daily volume of 19,400 shares. The stock ranged in price between $1.65-$1.71 after having opened the day at $1.67 as compared to the previous trading day's close of $1.70.

Books-A-Million, Inc. operates as a book retailer primarily in the eastern United States. It operates in three segments: Retail Trade, Electronic Commerce Trade, and Real Estate Development and Management. Books-A-Million has a market cap of $25.3 million and is part of the services sector. Shares are down 3.4% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Books-A-Million as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, poor profit margins and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on BAMM go as follows:

  • BOOKS-A-MILLION INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, BOOKS-A-MILLION INC swung to a loss, reporting -$0.52 versus $0.15 in the prior year.
  • The gross profit margin for BOOKS-A-MILLION INC is currently lower than what is desirable, coming in at 26.50%. Regardless of BAMM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, BAMM's net profit margin of -6.81% significantly underperformed when compared to the industry average.
  • Looking at the price performance of BAMM's shares over the past 12 months, there is not much good news to report: the stock is down 29.17%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
  • The company, on the basis of net income growth 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 increased by 0.7% when compared to the same quarter one year prior, going from -$6.94 million to -$6.89 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Specialty Retail industry and the overall market, BOOKS-A-MILLION INC'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: Books-A-Million 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.