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Earnings Watch: 5 Crummy Retail Stocks on Deck

Even beat-and-raise earnings won't change the thesis on these struggling retail stocks, which have more losses to come

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First-quarter earnings season sure didn’t save the best for last.

earnings 4 ETFs to Profit From the Next Sell-offReporting season is coming to a close, which means it’s time for the last of the retail stocks to release quarterly results. And considering a number of the most troubled retailers are on the docket, expect ugly to reign supreme.

True, terrible winter weather took a toll on retailers and retail stocks. But tepid demand — especially amid lower-income consumers — is likewise pressuring revenue. Just look at what happened at Walmart (WMT) in the first quarter. As bad as the weather was, it’s the almost-stalled pace of economic recovery that’s the real threat to retailers’ businesses.

The blended earnings growth rate for the retail sector is projected to be less than 2% in the first quarter, according to data from FactSet. Of the 13 retail subsectors, only four are expected to post year-over-year profit growth.

So it’s almost fitting that this week brings earnings from some of the most challenged retail stocks. From office supplies to teen fashion, here’s a look at five struggling retailers and what to expect from earnings:

Article printed from InvestorPlace Media, http://investorplace.com/2014/05/retail-stocks-earnings-aeo-spls-bby-shld-aro/.

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