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Canaccord Genuity on MSCI, Cell Therapeutics, and Fifth & Pacific


MSCI shares are pummeled, Cell Therapeutics jumps higher, and Fifth & Pacific slashes its profit outlook for the year.

Fifth & Pacific (NYSE:FNP): The Juicy has gone sour.

Fashion company Fifth & Pacific late Monday slashed its profit outlook for the year, citing difficulties at its struggling Juicy Couture brand in selling apparel at full price. The company formerly known as Liz Claiborne lowered its adjusted EBITDA forecast to now range of $100-115 million, down from a prior $125-140 million. Earlier this year, CEO William McComb said Juicy Couture's business would start improving in the second half of 2012, with same-store sales rising by 10%. Instead, they fell 1%. "Juicy is taking a step backwards," McComb told analysts on Monday.

Indeed, it seems the once-hot brand beloved for its velour track suits with an urban look has fallen out of favor with many shoppers, who have come to their senses. McComb said there were "significant shortfalls in full-price" selling at Juicy Couture, a trend he expects will continue in the fourth quarter, which includes the holiday season. To address Juicy's problems, McComb said Fifth & Pacific would ship more merchandise to higher grossing stores, be quicker about getting unsold merchandise into outlets and out of its regular stores, and cut costs.

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No positions in stocks mentioned.
Canaccord Financial and its affiliated companies may have a Corporate Finance or other relationship with the companies mentioned and may trade in any of the Designated  Investments mentioned herein either for their own account or the accounts of their customers, in good faith and in the normal course of market making. The authors have not received, and will not receive, compensation that is directly based upon or linked to one or more specific Corporate Finance activities, or to coverage herein.
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