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