Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of teen-oriented retailer Pacific Sunwear
So what: As the results from American Eagle Outfitters
On the bright side, the company topped analysts' earnings estimates for the second quarter, as it reported a non-GAAP loss per share of $0.18 versus the anticipated $0.24 loss. It also managed positive same-store-sales growth of 1%. However, guidance for the third quarter has same-store sales falling in the mid- to high single-digit range, and the loss per share coming in between $0.10 and $0.18. Wall Street had been expecting the loss per share to improve to $0.05.
Now what: I can't sum it up better than PacSun CEO Gary Schoenfeld: "Until recently we had expected this positive momentum to continue, yet we are now more cautious in our near term outlook due to a combination of factors including macroeconomic pressure, along with a highly promotional start to the back to school season."
And that, ladies and gents, is, in a nutshell, why the stock is getting absolutely shellacked today. Want to keep up to date on these stocks?