Shares of Anaheim-based Pacific Sunwear of California Inc. plunged Friday as investors reacted to the retailer’s poor outlook, while shares of Foothill Ranch-based Wet Seal Inc. jumped amid cost cutting efforts that have shored up profits even as sales struggle.
Shares of Pacific Sunwear, which runs mall stores selling clothes inspired by surfing and skateboarding, closed down about 26% with a market value of about $400 million.
On Thursday, the retailer reported quarterly results that met expectations but warned about the next two quarters.
Pacific Sunwear said it sees profits for the current quarter and the following three months through January coming in well below what Wall Street had been expecting.
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Some analysts cut their ratings on Pacific Sunwear based on the poor outlook.
Shares of Wet Seal, which runs mall stores for teen girls and young women, took a different course. They closed up more than 10% with a market value of $415 million.
Wet Seal faces slowing sales, just as with Pacific Sunwear and other retailers. But investors cheered the company’s cost cutting, which has boosted profits.
On Thursday, Wet Seal reported quarterly results and offered an outlook for the current quarter that largely fell in line with Wall Street expectations.
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For the current quarter, Wet Seal’s outlook was mixed but wasn’t bad compared to what other retailers have been reporting.
The company forecast a profit of $5 million to $7 million. Analysts had been expecting a profit of $5 million.
Sales for the three months October are seen coming in at $144 million to $149 million, down from the $150.6 million analysts had been expecting.
