Retail Woes: 3 Stocks That Have Been Hit The Worst

The recent struggles of the retail industry have been well-documented. While several major indices continue to flirt with new highs, traditional retail stocks have been hammered by changing consumer trends and a worldwide shift to online shopping.

The popularity of e-commerce is nothing new, but it feels like 2017 has been the year that the floor has finally fallen out from under those companies who have not transitioned. And with Amazon’s (AMZN - Free Report) deal to buy Whole Foods (WFM - Free Report) getting approved this week, the online shopping king has entered a whole new market.

Of course, some retailers are faring better than others. Big-box behemoths like Walmart (WMT - Free Report) saw the writing on the wall years ago and invested heavily in their own digital platforms. Others, like Home Depot (HD - Free Report) and Tiffany & Co (TIF - Free Report) , have proven to operate more “Amazon-proof” businesses.

However, plenty of the world’s great retail brands have been hammered by digital competition. The once-iconic Sears (SHLD) is hanging on by a thread, and department stores like Macy’s (M - Free Report) and Kohl’s (KSS - Free Report) have also tanked.

But who has had it the worst? Take a look at three of the ugliest stocks in the retail industry below.

1.     Dick’s Sporting Goods (DKS - Free Report)

Just last week, Dick’s posted second-quarter earnings of 96 cents per share, missing the Zacks Consensus Estimate of $1.00. Management also significantly lowered its full-year outlook, guiding for earnings in the range of $2.80 - $3.00 per share—down from the previously announced $3.65 - $3.75 range.

The report was the latest chapter in what has been an awful year for Dick’s. The stock tumbled to a 52-week low and is now down nearly 50% year-to-date. On top of this, we’ve now seen a whopping 13 negative revisions to its full-year and next-year earnings estimates, which have dragged the stock down to a Zacks Rank #5 (Sell).

Dick’s will be further challenged by Nike’s (NKE - Free Report) decision to begin selling its products on Amazon—a move that only adds to the company’s competition. Looking ahead, profits are expected to slump by over 45% this quarter and 6% this fiscal year, and that regression is expected to continue into the next fiscal year as well.

2.     Ingles Markets (IMKTA - Free Report)

In today’s retail landscape, it should come as no surprise that a regional supermarket chain like Ingles is struggling. As the staples of the grocery store become increasingly available online, it’s been tough enough for the industry’s giants to compete—let alone a company that doesn’t have the advantage of scale.

Shares of Ingles have fallen more than 46% year-to-date, and the stock currently has a Zacks Rank #5 (Strong Sell). Earnings are expected to slump more than 12.3% this fiscal year, and the company’s cash flow has retracted nearly 1% already.

On top of its questionable financial position right now, Ingles is the type of store that could be threatened the most by Amazon’s acquisition of Whole Foods. The suburban supermarket can keep up with trendy organic grocers because it can traditionally offer lower prices, but that might change soon.

3.     Vitamin Shoppe (VSI - Free Report)

Vitamin Shoppe shares have been steadily dropping for years now, but 2017 has been a particular rough period for the company. The nutrition supplements retailer just missed the Zacks Consensus Estimate for earnings by over 40% in the latest quarter, extending its earnings-miss streak to three.

The stock has now tumbled more than 75% year-to-date. Earnings are expected to slump more 66% this fiscal year, and sales are projected to tumble nearly 7%. That regression will continue next year, with earnings and sales expected to retract another 4% and 1%, respectively.  

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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