Wednesday, August 27, 2008

Deep Discounters Weak in Early Trade

Deep Discount Retailers weak after DLTR lowered guidance - DLTR sees FY EPS of 2.33-2.43 vs. consensus of 2.44 FDO and BIG are among the weakest names in the S&P 500 in early trading (down about 3%). Recall that DRI warned yesterday (dropped 12.4% on Tuesday to 28.25). We could see the "trade down" thesis unwind which would negatively impact the WMT and COST's of the world that have dramtically outperformed YTD.

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