Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Summary: Women's apparel retailer Chico's FAS reported net profit of $42.1 million (24 cents/share), down from $53.2 million (29 cents/share) in the year-ago quarter, but inline with lowered analyst expectations following the company's warning earlier this month. Merchandising problems and aggressive marketing efforts around new store openings weighed on the bottom line. The company will wait to report Q4 forecasts until 'it gauges the success of upcoming marketing efforts.' November same-store sales fell 0.4%, largely due to softness at its White House Black Market chain. The stock rose slightly in after hours trading, perhaps due to the lack of Q4 warning. The stock is down 47% YTD.
Related links: Press release Media coverage: MarketWatch , TheStreet.com , BusinessWeek . Commentary: Chico's Brand Maturing, Not Failing , A Fine Exhibit of Clarity in Chico's Recent Filing
Potentially impacted stocks and ETFs: Chico's FAS (NYSE:CHS), Nordstrom (NYSE:JWN), Talbots (NYSE:TLB) • ETFs: Retail HOLDRs (AMEX: RTH)
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