3 Retail Stocks I Never Plan to Buy
The retail market has been a brutal one over the past year, due to soft brick-and-mortar traffic, an over-retailed U.S. market, and tough competition from e-commerce competitors. I recently identified three decent dividend plays in that tough sector, but today I'll highlight three landmines which I never plan to buy -- Michael Kors (NYSE: KORS), Abercrombie & Fitch (NYSE: ANF), and Under Armour (NYSE: UAA) (NYSE: UA).
Shares of Michael Kors have fallen more than 20% this year due to three straight quarters of annual revenue declines. Those declines are attributed to tough competition from affordable luxury market rivals like Coach (which recently agreed to buy Kate Spade); overexposure to the wholesale channel, which cheapens its brand appeal; and an overextended brick-and-mortar footprint, which resulted in a double-digit comps decline last quarter.
Source: Michael Kors.
Source: Fool.com
