from Eric Buscemi of Theflyonthewall.com
Tween Brands down -- Women's retail looking bleak
Tween Brands (TWB) is down almost 3% on the day on two pieces of news:
- Competitor Coldwater Creek (CWTR) cut its fourth quarter EPS outlook citing slower-than-expected customer traffic throughout holiday season. Wachovia said this is "not" company specific and is indicative of the weaker women's retail environment.
- Buckingham had cautious/negative comments on Tween Brands this morning. The firm advised remaining Neutral, citing a lack of clarity on the timing of improved apparel trend in the company's Limited TOO stores. January sales have not picked up as expected, prompting an unplanned "Buy 1 Get 1 at 50% off" markdown which could create additional downside to the firm's most recent 4Q06 EPS estimate.