Wells Fargo Lowers Estimates On Eight Retailers With Brexit Exposure

Wells Fargo has lowered estimates on eight retailers it covers over concerns about U.K. exposure following the Brexit vote, the bank wrote in a Thursday note. Analysts lowered Fossil Group Inc.'s full-year 2016 earnings per share estimate to $2.07 from $2.15, and the full-year 2017 EPS estimate to $1.54 from $1.92 because "one-third of the company's sales are generated in Europe, and we estimate that 30% of European revenue comes from the U.K." Fossil shares are inactive in premarket trading, but down 59.3% for the past year. The other big move was Ralph Lauren Corp. . Wells Fargo lowered the luxury clothing and apparel retailer's full-year 2016 EPS estimate to $5.29 from $5.52 and the full-year 2017 EPS estimate to $5.53 from $5.86. Bank analysts estimate that 20% of the company's sales come from Europe with 40% of European revenue from the U.K. Ralph Lauren shares are inactive in premarket trading, but down 29.2% for the last 12 months. Other reductions were at Urban Outfitters Inc. , Sally Beauty Holdings Inc. , TJX Companies , Foot Locker Inc. , Signet Jewelers Ltd. and Michael Kors Holdings Ltd. . TJX (up 14.7%) and Michael Kors (up 17.7%) are the only stocks that have increased over the past 12 months. Signet Jewelers has seen the biggest decline in the past year (32.3%). The S&P 500 is up 2.5% over the last 12 months.