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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,

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