Sector Snap: Women's Apparel

The company cut first-quarter guidance to about 50 cents per share, from a previous range of 75 cents to 80 cents per share. Analysts expected a profit of 75 cents per share, according to a Thomson Financial poll.

Shares fell across the sector amid worry the cut indicates a difficult economic environment his hitting retailers hard.

Consumers have been cutting back as they face high food and gas costs and weak credit and housing markets. Women's apparel retailers have been among the hardest hit.

Meanwhile, the general market fluctuated, as the Commerce Department said consumer spending edged up by 0.1 percent last month, in line with expectations, and said personal incomes increased by 0.5 percent in February a bigger rise that the market expected.

Chico's FAS Inc. fell 64 cents, or 8.3 percent, to $7.03 during midday trading. Talbots Inc. fell 78 cents, or 7 percent, to $10.41. Liz Claiborne Inc. shares fell $1.19, or 6.1 percent, to $18.36.

Charming Shoppes Inc. fell 27 cents, or 5.5 percent, to $4.68 per share. Ann Taylor Stores Corp. fell 63 cents, or 2.7 percent, to $23.13.