U.S. markets may have had their best year on record.
To date, Dow Jones Industrials are up 25%. The NASDAQ is up 38%. The S&P 500 rocketed higher by 31%. From here, we could see higher highs with trade tensions dialed down. Unfortunately, some stocks couldn’t keep up – and became the year’s biggest flops.
Fossil Group Inc. (FOSL)
After a poor outing in 2018, FOSL couldn’t pull it together in 2019. Shares fell 54% on the year after a string of earnings disappointments. In the third quarter for example, FOSL reported an 11% drop in revenue, and a loss of $26 million, as compared to a $5 million loss year over year. The company expects to see further sales declines of 5% to 10% in the current quarter.
Abiomed Inc. (ABMD)
Shares of ABMD had a heart-stopping year, plunging 44% on the year. All after questions about the usefulness of its Impella heart pumps were called into question.
According to the Chicago Tribune, “The Impella device is associated with an increased risk of death, bleeding and stroke among patients undergoing angioplasty to re-open clogged arteries, two separate research teams concluded in presentations given in November at the American Heart Association’s annual meeting in Philadelphia.”
Macy’s is down 39% on the year thanks to retail industry struggles, and global trade pressures. While CFO Paula Price said that consumer spending was healthy earlier this year, the company lowered its forecast because of global uncertainties and declines in the retail sector. “The slow death of traditional retailers—particularly department stores—has certainly hit Macy’s, which have closed more than 100 stores and cut thousands of jobs as mall traffic falls and customers increasingly switch to online shopping,” as noted by Forbes.