Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Children's Place
So what: Guidance for the third quarter fell to a range of $1.10 to $1.13 from $1.38 to $1.43. This is a troubling drop that has moved analysts to downgrade the stock.
Now what: It wasn't the economy that made the bad quarter, but "poorly performing fashion," never a good sign for retailers. Of course this can be fixed in the long run, and Children's Place is already updating inventory. The guidance drop is a big red flag for investors, and I don't expect a near-term bounce given the news, so I'm not buying this drop.
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