J.Crew, Tiffany Lead Retail Lower (JCG, TIF)
August 27, 2010 11:00 AM
Retail stocks are lower today after disappointing outlooks from both J. Crew (NYSE: JCG) and Tiffany & Co. (NYSE: TIF).
Tiffany reported revenues for its second quarter that missed expectations, citing weaker demand for lower-priced jewelry. The company did raise its full-year profit outlook by 10 cents to a range of $2.60 to $2.65 per share, but said third-quarter profit growth will be limited by higher marketing spending.
J. Crew handily beat estimates for its second-quarter, but its outlook sent shares tumbling. The company lowered full-year fiscal 2011 guidance to $2.25 to $2.35 per share versus the $2.46 consensus.
CEO Mickely Drexler said, "The continued economic uncertainty that we are all seeing is leading us to take a more conservative outlook for the back half of the year."
Shares of J. Crew are lower by $2.27, or 6.79%, to $31.16.
Shares of Tiffany are down $1.94, or 4.45%, to $40.17.
