) to hold from buy after the company said it would report a worse than expected fourth quarter shortfall.
Analyst Kevin Silverman said he was surprised at the extent of the profit warning, especially since the company previously indicated solid December sales. He said the company had a difficult time with sales given the broader economic cool down, but he doesn't think this is the sole reason for the disappointment. Silverman said there must have been something about the items offered in the company's catalogue that simply did not appeal to consumers.
He cuts his fourth quarter earnings per share estimate to $0.06, down from $0.66 and he cut 2001 EPS to $1.20, down from $1.80.