With Black Friday only a few days away, all eyes from retailers are on consumers’ wallets. But some need a big holiday boost more than others.
Major retailers struggled in the third quarter in 2015, and stocks dipped following lower-than-expected earnings reports from industry giants such as Macy’s,
At the top of our needy list is luxury retailer
Another prominent member on our list is Macy’s Inc., which saw its stock plunge 17% over the past month. Same-store-sales in Q3 fell 3.6%, compared to growing 0.7% in 2014. Analysts at Nomura noted that the main factors for sluggish sales were lower tourist traffic, warm weather, and weaknesses in major brands. Given the disappointing result in the third quarter, the retailer’s holiday outlook is shrouded by uncertainty, with 2015 comparable sales is estimated to decrease by 2.1%.
Despite a better-than-expected quarter followed by a 10% one-day stock surge, Abercrombie & Fitch still reported flagging same-store sales of negative 1%. Thanks to the management’s turnaround efforts such as remodeling stores and closing underperforming units, the retailer is set to have flat same-store-sales in the 4th quarter of 2015 – compared to a 10% drop for the same period in 2014, according to a research note by Stifel Nicolaus.
Here is a list of the 10 most troubled retailers based on same-store-sales in the latest quarter: