While Jefferies (NYSE:JEF) acknowledges some specialty retailers will do better in 2011 than others, it particulary notes those with stronger international exposure, although they downgraded Coach (NYSE:COH), rue21 (Nasdaq:RUE), Aeropostale (NYSE:ARO), Tiffany (NYSE:TIF), Talbots (NYSE:TLB0), Urban Outfitters (NASDAQ:URBN).
They lowered their ratings on all of the above from "Buy" to "Hold," with the exception of Aeropostale, which they lowered from "Hold" to "Underperform."
They're more bullish on Abercrombie & Fitch Company (NYSE:ANF), Fossil (Nasdaq:FOSL) and Guess? (NYSE:GES).
Jefferies commented on speciality retailers, saying, "Our 2010 call to sell off-price worked in 2H but not in 1H. We believe the value trade of the last few years was cyclical not secular, and expect a very difficult road ahead for this part of the market. Our ARO call follows this theme."
Coach was trading at $54.67, down $0.64, or 1.16 percent, as of 1:03 PM EST. rue21 was trading at $30.19, up $0.88, or 3.00 percent. Tiffany was at $62.43, gaining $0.16, or 0.26 percent. Talbots was trading at $8.42, down $0.10, or 1.17 percent. Urban Outfitters was at $35.26, down $0.51, or 1.42 percent. Aeropostale was at $24.03, down $0.61, or 2.48 percent.
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