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Ticker Shock: Limited, Gymboree Make Retail Look Good - Almost


Thursday's top stories and stocks with potential to move.


Let's keep our fingers crossed for a better day today, shall we?

As we slept, Asian markets got pummeled in a big way. The Hang Sang was off more than 4%, while the Nikkei was off more than 6%. Europe is showing me some red as well. And here in the States, we're off to a lower open.

Limited (LTD)
Late Wednesday afternoon, Limited disseminated its third quarter results.

It earned a whopping penny a share. To be fair, that was better than the flat EPS the Street had been expecting. But there didn't seem to be too much more on the good-news front.

Its comp-store sales were off 7%, and it's looking for adjusted EPS of $1.20 to $1.35 for the full year. Unfortunately, the Street is at $1.38 a share.

Look, I think Limited is one of those stocks that could potentially pop when this economic cloud lifts. But my gut tells me there may be a better entry point down the road.

Men's Wearhouse (MW)
After the close on Wednesday, the retailer of men's suits reported its third-quarter numbers.

Excluding items, it turned in a profit of $0.30 per share, which was $0.06 north of expectations. However, I that the party favors should be put away, because its top line came in at $459.7 million - well below the roughly $512.1 million it turned in during the comparable period last year, and also well short of the more than $475 million analysts had been expecting.

Another disappointing tidbit: The company said it's looking for adjusted EPS of $1.04 to $1.22 (wide range, right?). The Street is at $1.25 a share.

Long story short, I have no intention of dipping my toes in the water here, even though on a P/E basis, I'll concede the shares look kind of cheap.
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No positions in stocks mentioned.

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