NEW YORK (

TheStreet

) -- Retail stocks were in the red Monday along with the broad market.

Luxury retailers

Coach

(COH)

and

Tiffany

(TIF) - Get Report

tumbled on Japan fears, as both have exposure to the country.

Wall Street Strategies analyst Brian Sozzi said the declines reflect the premium at which both of these stocks are valued relative to overall retail sector and equities markets.

"Consequently, any swift decline in sales, despite muddling growth in the country for each, raises the risk to future earnings," he wrote in a note. "Both companies in my view have been managing their Japanese businesses to profitability rather than new unit growth."

Tiffany stores are clustered along the coast, Coach has one store around the Fukushima area and in Sendai and both companies have locations in Japan's major airports.

Shares of Coach dropped 5.6% to $52.99, while Tiffany fell 5.1% to $59.96 Monday afternoon.

Barnes & Noble

(BKS) - Get Report

tumbled 8.9% to $10.70, following a report that rival

Borders

(BGP)

could emerge from bankruptcy this fall.

In an interview with

The Wall Street Journal

, Borders CEO Mike Edwards said the company hopes to present a formal business plan to publishers and creditors by early April. It could then emerge from bankruptcy in August or September.

Other notable retail losers included

Zale

(ZLC)

, which tanked 11.7% to $3.53,

Rite Aid

(RAD) - Get Report

, which sank 7% to $1.13 and

Talbots

(TLB)

, which decreased 5.9% to $5.47.

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--

Written by Jeanine Poggi in New York.

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Jeanine Poggi

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