Last week, investors experienced a violent sell-offfor many department-store apparel retailers after some companies posted earnings. Macy’s (NYSE: M), Kohl’s, Nordstrom (NYSE: JWN), J.C. Penney (NYSE: JCP), Sears, and Ascena Retail Group all took a beating, down between 10% and 30% in just one week.
The catalysts were earnings reports from several names, although not every company mentioned reported. Still, almost any retailer primarily selling full-priced apparel was sold off, as investors concluded that these companies are all in secular decline. And while many value vultures may be looking at these names right now, I’d stay away for several reasons.