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 (Nasdaq: PLCE) shares fell 14% today on weak guidance for third-quarter earnings.

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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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his Motley Fool CAPS picks at TMFFlushDraw.

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