Tween Brands (TWB) Sinks After Q1 Warning
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Shares of Tween Brands, Inc. (NYSE: TWB) are 18% lower today after issuing a Q1 profit warning. The company sees Q1 EPS the range of $0.12 to $0.17 compared to its previous guidance of $0.35 to $0.40 per diluted share. This new range is well below the Wall Street consensus is $0.37.
The company said the shortfall was due to weak sales at Limited Too's, which is projected to post a Q1 comparable store sales decline of 7% to 9%. The company said that Limited Too's sales were weak for the last two weeks of February and most of March.
CEO Mike Rayden said their tween customers did not respond well to Limited Too's spring sportswear. He also said their marketing programs were not effective in driving sales. Rayden is hoping changes to the creative and operational leadership will drive longer-term success.
Rayden thinks customers are trading down to lower price items or sale items and buying fewer of them.
On a bright note, Q1 sales at the company's Justice stores are expected to increase in the mid to high teens. The company also said sales trends at Limited Too have improved with the latest floorset beginning April 2nd. [LJ]
The company said the shortfall was due to weak sales at Limited Too's, which is projected to post a Q1 comparable store sales decline of 7% to 9%. The company said that Limited Too's sales were weak for the last two weeks of February and most of March.
CEO Mike Rayden said their tween customers did not respond well to Limited Too's spring sportswear. He also said their marketing programs were not effective in driving sales. Rayden is hoping changes to the creative and operational leadership will drive longer-term success.
Rayden thinks customers are trading down to lower price items or sale items and buying fewer of them.
On a bright note, Q1 sales at the company's Justice stores are expected to increase in the mid to high teens. The company also said sales trends at Limited Too have improved with the latest floorset beginning April 2nd. [LJ]
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