5. Body's Repeat Performance
Like the TV networks, Wall Street is filling the summer void by programming reruns. And we're not simply talking about European bailouts and broken internet IPOs perpetually popping up on trading screens either.
Take Body Central's (BODY) ridiculous repeat performance for example.The women's apparel retailer slashed its second-quarter outlook Monday as a result of weak sales trends and a bloated inventory, causing its stock to collapse by 49% to $8.66. Body Central cut its second-quarter earnings forecast to 19 to 21 cents per share from a range of 26 to 28 cents, and says it now expects second-quarter net revenue of $77 million to $79 million, down from $80 million to $82 million. "We continue to diligently manage inventory and to take aggressive markdowns on slow moving items," said CEO Allen Weinstein in a statement. Wait a second there Weinstein! Didn't we see this same exact episode not too long ago? Oh yeah! That's right. Just last month Body Central lowered its profit and sales guidance, surprising the Street and causing its shares to sink 49% in the process. Here's what Weinstein said back in May when the stock took its last shellacking: "We are closely monitoring our inventory levels and content." Here's what we said at the time: "Seriously, not since Rocky broke Apollo Creed's rib have we seen a crowd favorite suffer such a massive gut-shot." Another month, another body blow for Body Central. Time to change the channel folks because, quite sadly, we've seen this show before.
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