As the calendar flips to November and the Halloween decorations retreat from neighborhoods, there’s just one thing on the minds of most Americans — the approach of the great turkey engorging. Beyond that, Black Friday deals and the start of the holiday shopping season come into focus for retail stocks.
Based on the breakdowns and heaviness of a number of key retail stocks, it’s not shaping up to be a very merry time for their shareholders. The competitive threat of Amazon.com, Inc. (NASDAQ:AMZN), consumer disinterest in pricy fashions and tepid wage growth are all to blame.
Specific factors, however, are at work as well; from stalled turnarounds to murky strategic plans.
Here are five retailers suffering big discounts on their share prices:
Gap Inc (NYSE:GPS) shares are falling further below their 50-day moving average, down nearly 12% from their recent high and undoing much of the rally out of its August low.
The company should benefit from a recent fashion shift away from yoga pants back into denim, but Gap struggles to find traction in its upscale Banana Republic and Gap labels as shoppers flock to its cut-rate Old Navy brand.
The company will next report results on Nov. 16 after the close. Analysts are looking for earnings of 54 cents per share on revenues of $3.8 billion.
When the company last reported on Aug. 17, earnings of 58 cents per share beat estimates by five cents on a 1.4% drop in revenues.
JC Penney (JCP)
J C Penney Company Inc (NYSE:JCP) shares have been under heavy pressure over the past week after issuing disappointing Q3 guidance pointing to a quarterly loss of upward of 45 cents per share versus the 17-cent loss analysts were looking for as the result of heavy apparel liquidations.
A bevy of analyst downgrades followed as doubts swirl about the company’s ability to fix its women’s apparel and drive traffic growth.
The company will next report results on Nov. 10 before the bell. Analysts are looking for a loss of 43 cents per share on revenues of $2.8 billion.
When the company last reported on Aug. 11, a loss of nine cents per share missed estimates by five cents on a 1.5% rise in revenues.
Abercrombie & Fitch (ANF)
Abercrombie & Fitch Co. (NYSE:ANF) shares are suffering a sharp decline on Wednesday, threating to cut through its 200-day moving average, after suffering a downgrade from analysts at JP Morgan following a meeting with management.
While leadership has made progress in its supply chain and reorienting the brand to attract millennials (and shed its preppy, hooded-sweatshirt image) industry-wide headwinds are stifling the effort.
The company will next report results on Nov. 16 before the bell. Analysts are looking for earnings of 21 cents per share on revenues of $818.7 million.
When the company last reported on Aug. 24, a loss of 16 cents per share beat estimates by 17 cents on a 0.5% decline in revenues.
Dick’s Sporting Goods (DKS)
Dicks Sporting Goods Inc (NYSE:DKS) shares are threatening to break down out of a four-month consolidation range — which has capped a near 50% decline from its springtime highs — after a downgrade was issued by Wolfe Research on Wednesday.
The stock is down more than 60% from its late 2016 highs as overexpansion smacked headlong into Amazon’s plans for sportswear with manufacturers like Nike (NKE).
The company will next report results on November 14 before the bell. Analysts are looking for earnings of 27 cents per share on revenues of $1.9 billion.
When the company previously reported on Aug. 15, earnings of 96 cents per share missed estimates by four cents on a 9.6% rise in revenues.
Sears Holding (SHLD)
Sears Holdings Corp (NASDAQ:SHLD) is on bankruptcy watch with the media filled with stories of tightening supplier terms and concerns over its ability to remain a going concern heading into the holiday season. Shares are melting lower, taking out the lows from February to plumb new record lows.
The company will next report results on Dec. 7. Analysts are looking for a loss of $3.23 per share on revenues of $4 billion.
When the company previously reported on Aug. 24, a loss of $3.31 missed estimates by 83 cents per share on a 22.9% drop in revenues.