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: Shares of Bon-Ton Stores (NASDAQ:BONT) dropped more than 11% today after the company reported earnings.

So what: The company said sales in the second quarter fell 6% to $557.1 million and net loss improved from $45 million a year ago to $37.3 million, or $1.95 per share. But analysts were expecting revenue of $613.8 million and a loss of $1.38 per share, so results were well short of estimates.  

Now what: This is a slow time of the year for Bon-Ton, but trends are definitely heading in the wrong direction, something we've seen across retail. While the second quarter was bad, it was also discouraging to see management lower full-year earnings per share estimates from $0.40-$1 down to $0.15-$0.75. I think this might be a huge sell sign for investors and don't see a turnaround soon.

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