Fearful of a slowdown in consumer spending, retail shares tumbled on Tuesday after a bleak report by the Commerce Department and a steep loss from Citigroup Inc.
As a result, the Dow Jones Industrial Average fell 2.2 percent to 12,501.11, while the broader S&P 500 slid 2.5 percent to 1,380.95. The S&P Retail Index dropped 1.9 percent to 364.83.
Coldwater Creek announced after market on Monday that it would miss fourth-quarter expectations, sending shares free falling more than 27 percent to a 52-week low of $3.63 in early-morning trading Tuesday. When the dust cleared, the retailer rebounded slightly, closing down 25.1 percent to $3.86.
New York & Co. also slashed fourth-quarter earnings guidance, sending shares of the women's apparel retailer plummeting 22.9 percent to close at $3.87. The firm said it expects earnings in the range of 15 to 19 cents a diluted share, down from previous guidance of 23 to 32 cents a share.
Many retail stocks are now trading below $10. Here's a list:
|Retail Stocks Are Now Trading Below $10|
|Bebe Stores Inc.||$9.20|
|Christopher & Banks||$8.54|
|99 Cents Only||$6.32|
|New York & Co.||$3.87|
|Pier 1 Imports||$4.56|