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THE REAL MOST ACTIVE Youth Apparel Retailers Lead Nasdaq's Decline.(B)

Investor's Business Daily

| August 01, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: CRAIG SHAW

The Nasdaq composite dipped 1.2% Wednesday after three days of gains. The Nasdaq 100 slumped 1.9%. Volume declined, a positive sign in pullbacks during a rally.

Youth apparel retailers swooned after several firms warned of weak back-to-school sales. Hot Topic dived 6.90, or 31%, to 15.55 on the heaviest volume of the year. The music-related apparel chain said July sales would fall short of views and second-quarter profit would be little changed from a year earlier. Its stock, already struggling at its 200-day line, hit fresh 2002 lows.

Children's Place Retail Stores gapped down 3.35, or 15%, to 18.96 on more than six times normal trade. The clothing retailer said it expects a second-quarter loss of 35-40 cents a share, below views of a 25-cent loss. Merrill Lynch cut its rating to neutral from buy. Urban Outfitters pierced its 200-day line, losing 4.50 to 23.26. Trade surged more than sixfold.

J. Jill Group violated its 50-day average with a 2.40-point loss to 22.30 on twice normal trade. That line has provided support throughout the women's apparel retailer's 50% run-up this year. It's 18% off its early ...

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