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After moving higher for much of the past month, retail stocks are giving back some ground in morning trading on Monday. Electronics retailer RadioShack (RSH) is helping to lead the sector lower after reporting a bigger than expected decrease in second quarter sales.
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| | | {loadposition contentad} | | | | | The weakness in the retail sector is reflected by the 1.5 percent loss currently being shown by the S&P Retail Index. With the loss, the index is pulling back further off the nearly ten-month closing high that it set last Thursday. RadioShack is posting a steep loss after moving sharply higher last Friday following an upgrade by FBR Capital Markets. Shares of RadioShack are currently down 7.6 percent after reaching a nearly ten-month intraday high at the open. The loss by RadioShack comes even though the company reported second quarter earnings that rose to $48.8 million or $0.39 per share from $41.4 million or $0.32 per share in the year-ago quarter. The growth surprised analysts, who had expected the company to earn $0.28 per share. At the same time, the company said its sales for the quarter fell 2.9 percent to $965.7 million from $994.9 million in the same quarter last year. On average, analysts had been expecting RadioShack to report sales of $977.86 million. According to RadioShack, the drop in sales for the quarter came as a 4.6 percent decrease in sales generated by company-operated stores and a 3.2 percent decline in kiosk sales more than offset an 18.8 percent increase in other sales. Within the retail sector, Charming Shoppes (CHRS) and Children's Place (PLCE) are also posting notable losses, pulling back off their recent highs. Shares of Charming Shoppes are down 4 percent, while shares of Children's Place are down 3.6 percent.
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