Tween Brands (TWB), the New Albany, Ohio, operator of the Limited Too and Justice for Girls retail chains said it expected earnings of 12 to 17 cents a share for the quarter ending May 3. In February, it issued guidance of 35 to 40 cents a share. Wall Street analysts, on average, expected earnings of 37 cents. An anticipated same-store sales drop of 7% to 9% at the company's flagship Limited Too chain as well as a four cents a share impact from the abrupt March 6 resignation of Limited Too President Jill Dean contributed to the lower outlook, Tween said in a press release. Limited Too's sales were weak for the last two weeks of February and most of March, the company said. Tween Brands Chairman and Chief Executive Mike Rayden said spring sportswear failed to attract its target customer, and that required some major shifts.
While yesterday's 23 % drop in share price may seemed to have priced in the worst case scenario - the point and figure target of $ 8.00 suggests there is a lot more room on the downside. Please note the timely FusionIQ Sell Signal on ly a few weeks before yesterday's big drop.