Retailers Crushed As China Revalues Yuan (ANN, JCG, ANF)

Shares of some U.S. retailers are coming under intense selling pressure today on news that China would allow its currency to appreciate against the U.S. dollar. This move could provide a boost for companies that exports goods, but could also raise input costs as well. Many retailers benefit from outsourcing manufacturing operations to Asia. However, as the yuan rises, labor and materials costs in Asia wil rise, putting pressure on companies' margins. Shares of AnnTaylor ANN are getting absolutely crushed today, down $1.42, or 6.94%, to $19.08. J. Crew JCG is down $2.56, or 5.86%, to $41.10. Abercrombie & Fitch ANF is down $1.07, or 3.03%, to $34.26.