PacSun shares opened down this morning after the company announced yesterday a “weak outlook that resulted in a series of investment downgrades,” according to Forbes.com. Not surprising, it also pulled down shares of Volcom down more than $2 by mid-morning.
Pacific Sunwear reported after the regular markets closed Thursday that it swung to a fiscal second-quarter loss from discontinued operations but offered downbeat profit projections for the third and fourth quarters amid a weakening economy. . . “The retail environment is extremely difficult and the primary root of (Pacific Sunwear’s) poor performance,” Mitch Kummetz, an analyst at Robert W. Baird & Co., wrote in a note released early Friday. “However, given the company’s revised back-half outlook, its strategy of refreshing stores and refining its merchandise mix isn’t making enough of a difference to warrant an Outperform rating anymore.”
We thinking we prefer the Zumiez strategy.
[Link: Forbes.com]
