Story updated at 9:55 a.m. to reflect market activity.
The Fresh Market fell 5.1% to $32.61 in morning trading.
Analyst Karen Short wrote that bad weather could have a negative impact on sales and earnings.
Short wrote, "We are downgrading TFM to a hold for 3 reasons: 1) inclement weather could have materially impacted comps based on our channel checks so we are reducing 4Q and FY14 below consensus, 2) while weather has been widely discussed and misses should be expected, the reaction to GNC's miss/guidance makes us cautious that downside isn't fully priced in at TFM, 3) weakness in comps and EPS (potentially, partially, weather-related), coupled with weak NSP, could play into the Bear thesis that TFM is "structurally challenged." While we disagree with the Bears, we are concerned results might strengthen their argument, and, therefore, see additional downside risk."
Separately, TheStreet Ratings team rates FRESH MARKET INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRESH MARKET INC (TFM) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, premium valuation and poor profit margins."