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Are you interested in gaining exposure to consumer spending trends? For a closer look at stocks of the retail industry, we ran a screen.

We began by screening the retail sector for stocks with high growth projections, with 5-year projected EPS growth rates above 15%.

Then to analyze these companies' profitability, we ran DuPont analysis on the names. DuPont analyzes profitability by breaking up return on equity (net income/equity) into three components:

ROE

= (Net Profit/Equity)

= (Net profit/Sales)*(Sales/Assets)*(Assets/Equity)

= (Net Profit margin)*(Asset turnover)*(Leverage ratio)

Because increases in net margin and asset turnover are considered good things, DuPont focuses on companies with these positive characteristics: Increasing ROE along with,

•Decreasing leverage, (i.e. decreasing Asset/Equity ratio)

•Improving asset use efficiency (i.e. increasing Sales/Assets ratio) and improving net profit margin (i.e. increasing Net Income/Sales ratio)

Those companies that pass DuPont are seeing positive trends in the sources of their increasing profitability, which adds further weight to the idea that the names are profitable.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall.

Do you think these companies have impressive profitability? Use this list as a starting point for your own analysis.

List sorted by 5-year projected EPS growth.

1. Vitamin Shoppe, Inc. (VSI): Operates as a specialty retailer and direct marketer of nutritional products. Market cap at $1.42B, most recent closing price at $49.04. 5-year projected EPS growth at 21.28%. MRQ net profit margin at 7.36% vs. 5.34% y/y. MRQ sales/assets at 0.496 vs. 0.459 y/y. MRQ assets/equity at 1.323 vs. 1.511 y/y.

2. Zumiez, Inc. (ZUMZ): A mall-based specialty retailer providing sports-related apparel, footwear, equipment, and accessories. Market cap at $1.09B, most recent closing price at $34.77. 5-year projected EPS growth at 20.67%. MRQ net profit margin at 3.49% vs. 1.79% y/y. MRQ sales/assets at 0.343 vs. 0.337 y/y. MRQ assets/equity at 1.351 vs. 1.359 y/y.

3. Sally Beauty Holdings Inc. (SBH): Engages in the distribution and retail of professional beauty supplies. Market cap at $4.83B, most recent closing price at $25.81. 5-year projected EPS growth at 19.58%. MRQ net profit margin at 7.63% vs. 6.15% y/y. MRQ sales/assets at 0.497 vs. 0.47 y/y. MRQ assets/equity at -25.862 vs. -5.001 y/y.

4. Express Inc. (EXPR): Operates specialty retail stores in the United States. Market cap at $1.63B, most recent closing price at $18.18. 5-year projected EPS growth at 18.50%. MRQ net profit margin at 8.48% vs. 7.49% y/y. MRQ sales/assets at 0.564 vs. 0.562 y/y. MRQ assets/equity at 2.692 vs. 4.975 y/y.

5. Tractor Supply Company (TSCO): Operates retail farm and ranch stores in the United States. Market cap at $6.15B, most recent closing price at $85.39. 5-year projected EPS growth at 17.74%. MRQ net profit margin at 3.95% vs. 2.19% y/y. MRQ sales/assets at 0.585 vs. 0.53 y/y. MRQ assets/equity at 1.653 vs. 1.729 y/y.

6. Coach, Inc. (COH): Engages in the design and marketing of accessories and gifts for men and women in the United States and internationally. Market cap at $18.41B, most recent closing price at $64.06. 5-year projected EPS growth at 16.48%. MRQ net profit margin at 20.29% vs. 19.57% y/y. MRQ sales/assets at 0.372 vs. 0.349 y/y. MRQ assets/equity at 1.539 vs. 1.562 y/y.

7. Dollar General Corporation (DG): Operates as a discount retailer of general merchandise in the southern, southwestern, midwestern, and eastern United States. Market cap at $16.41B, most recent closing price at $48.49. 5-year projected EPS growth at 16.41%. MRQ net profit margin at 6.99% vs. 6.38% y/y. MRQ sales/assets at 0.432 vs. 0.365 y/y. MRQ assets/equity at 2.075 vs. 2.354 y/y.

8. PVH Corp. (PVH): Designs and markets branded dress shirts, neckwear, sportswear, footwear, and other related products worldwide. Market cap at $5.43B, most recent closing price at $77.18. 5-year projected EPS growth at 15.60%. MRQ net profit margin at 6.52% vs. 4.21% y/y. MRQ sales/assets at 0.211 vs. 0.2 y/y. MRQ assets/equity at 2.396 vs. 2.566 y/y.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 8 High-Growth Retail Stocks With Strong Sources Of Profitability