TWB stock dropped 17% after the company said it will shift hundreds of Limited Too stores to its more value-oriented Justice brand.
TWB's shares fell after the firm was downgraded by a retail analyst at Friedman, Billings, Ramsey from "outperform" to "market perform".
TWB announced that it was lowering its EPS guidance for Q1 FY08 from $0.35-$0.40 per share down to $0.12-$0.17 per share. The company stated that the revision was due to worse than expected same store sales declines at Limited Too.
Tween Brands announced that it will buy back shares worth $175 million for future repurchases. The company will immediately reacquire 5.2 million shares at $27.55 under its $143.3 million accelerated repurchases transaction. These repurchase programs have resulted in a revised outlook for Q3 EPS. The revised EPS for Q3 ranges from $0.43 to $0.47 compared to the earlier announcement of $0.40 to $0.45. The announcements led to an increase in the share price in the early hours of trading.