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5 Retail Stocks That Could Struggle During the Back-to-School Season

Hot temperatures might hurt consumer spending this Q3

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Pacific Sunwear

pacsun185For Pacific Sunwear (PSUN) especially, the back-to-school season has represented a much-needed bright spot in the midst of money-bleeding. The company has posted an unadjusted loss every quarter since 2010 … except for last year’s Q3, where it eked out a 1-cent unadjusted profit per share.

Of course, that still adjusted to 3 cents per share in the red, but PSUN has to take its victories where it can.

The small step in the right direction — which was followed by a strong stock performance the rest of the year — came on third-quarter sales that matched its generally strong holiday (relative to other quarters) period.

Unfortunately, this year’s third quarter is expected to be a wash — even though analysts were hoping for a 2-cent adjusted profit a few months ago — and sales are expected to drop 6% year-over-year.

Considering PSUN has more than doubled this year, putting it at a multiyear high, investors might be more than ready to take their profits and run. If hot temperatures indeed cool things off even more, watch out.

Article printed from InvestorPlace Media, http://investorplace.com/2013/07/5-retail-stocks-that-could-struggle-during-the-back-to-school-season/.

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