5 Major Retailers That Crushed Shareholders Last Week

Retail

Published: May 15, 2016 9:40 am

Last Updated: January 13, 2020 8:03 am

Retail stocks took a serious dive this past week as many retailers reported weak earnings and sales trends. Some of these companies blamed the weather, weak comparable sales, guidance or even the rise of Amazon.

Analysts at Cowen even believe that Amazon.com Inc. (NASDAQ: AMZN) will be the number one U.S. apparel retailer by 2017. This would only bring even further sales and earnings destruction for brick and mortar retail companies across the board.

24/7 Wall St. chose some of the largest losers from this week. As noted, this fallout ultimately extended through the almost the entire retail industry.

Other companies that lost at least 10% this past week include Michael Kors, Pier 1, Staples and Office Depot.

For those retailers featured, 24/7 Wall St. has included their recent trading history, as well as the 52-week trading range and the consensus analyst price target. Additional color around the news was added on each company.

Gap

Early in the week, Gap Inc. (NYSE: GPS) posted its April and fiscal first-quarter sales results. The company reported $1.12 billion in net sales for the four-week period ended April 30, which compares to $1.21 billion in the same period of the previous year. In terms of the first-quarter sales, Gap said it had $3.44 billion, which fell short of last year’s first quarter of $3.66 billion in sales.

Consensus estimates had predicted revenues of $3.50 billion for the first quarter. Comparable sales for the quarter were down 5%, versus a 4% decrease last year.

Last week, the share price fell 18.8% and closed at $17.60 on Friday. Its consensus analyst price target is $21.13. The 52-week trading range is $17.33 to $39.59.