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Retailers are adapting their business models as technology changes how people shop. Still, demand can be volatile as the industry is exposed to the ups and downs of consumer spending. This has stirred some uncertainty lately as retail stocks have tumbled by 11.1% over the past six months. This drawdown was worse than the S&P 500’s 2.9% loss.

While some companies have durable competitive advantages that enable them to grow consistently, the odds aren’t great for the ones we’re analyzing today. Taking that into account, here are three consumer stocks best left ignored.

Shoe Carnival (SCVL)

Market Cap: $472.3 million

Known for its playful atmosphere that features carnival elements, Shoe Carnival (NASDAQ:SCVL) is a retailer that sells footwear from mainstream brands for the entire family.

Why Do We Think SCVL Will Underperform?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand

2. Modest revenue base of $1.20 billion gives it less fixed cost leverage and fewer distribution channels than larger companies

3. Projected sales decline of 1.4% for the next 12 months points to a tough demand environment ahead

Shoe Carnival’s stock price of $17.69 implies a valuation ratio of 6x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than SCVL.

Torrid (CURV)

Market Cap: $662.5 million

Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE:CURV) is a plus-size women’s apparel and accessories retailer.

Why Are We Out on CURV?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand

2. Revenue base of $1.10 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale

3. Earnings per share have contracted by 23% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance

Torrid is trading at $6.35 per share, or 27.5x forward price-to-earnings. If you’re considering CURV for your portfolio, see our FREE research report to learn more.

Lithia (LAD)

Market Cap: $7.62 billion

With a strong presence in the Western US, Lithia Motors (NYSE:LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.

Why Are We Wary of LAD?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations

2. Gross margin of 15.9% is an output of its commoditized inventory

3. 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly