NEW YORK ( TheStreet) -- Retailers are giving up earlier gains after Citi released a disappointing second-half outlook. Citi analyst Deborah Weinswig lowered her earnings estimates and price targets for Home Depot ( HD), J.C. Penney ( JCP), Kohl's ( KSS), Lowe's ( LOW), Nordstrom ( JWN), Macy's ( M), Saks ( SKS), Target ( TGT), and Wal-Mart ( WMT), to reflect a more conservative outlook. "The consumer went on a shopping binge in the first quarter of 2010 and the subsequent hangover has set in," she wrote in a note. "A challenging macro environment, lack of fashion and difficult comparisons on the horizon will make this consumer hangover tough to kick." As a result, the S&P Retail Index is giving up some of its morning gains, falling 0.5% to 383.99. This follows last week's plunge of 45% to close on Friday at 385. But Weinswig did reassure that she doesn't think the economy is headed for a double-dip recession. She recommends playing defensive stocks in the second-half of the year, like Dollar General ( DG), or Family Dollar Store ( FDO). Family Dollar is scheduled to report its third-quarter earnings on Wednesday before the bell. Bebe ( BEBE) lost some of its momentum, but has still climbed 6.8% to $6.76. The specialty apparel retailer announced this morning that it plans to shutter its PH8 concept. The Bebe company will close or convert 48 PH8 stores, which will result in a pre-tax charge of $17 million. As a result, Bebe said it will be at the low-end of its fourth-quarter forecast. Bebe also said it will pay a one-time special cash dividend of $1 a share on July 30 to shareholders of record July 21.