Shares of Pacific Sunwear of California Inc. were down sharply Friday after the company reported weak second-quarter results a day earlier and warned the current period was cloudy.
The Anaheim-based surf retailer said sales rose 1.5% to $314 million in the second quarter.
But net income slumped by nearly 50% to $9.7 million in the period as the company struggled to come up with the right clothing mix.
“I am obviously very disappointed with our second quarter results,” said PacSun Chief Executive Seth Johnson, in a release. “Although it is still too early to make a judgment regarding the strength of our back to school assortment, we must be cautious in our planning and expectations for the third quarter.”
PacSun shares were down 9.6% to $13.70 on Friday. The company’s stock is off a 52-week high of $28.
The retailer said sales at stores open at least a year were down 5.5% in the period. PacSun also forecast profit for the third quarter that was way short of Wall Street expectations.
