Fruit of the Loom Shares Tumble
CHICAGO (AP) _ Shares of apparel maker Fruit of the Loom tumbled nearly 13 percent Wednesday after the company warned second-quarter profits will fall well below expectations.
The company’s stock fell $1.37 1/2 to $9.31 1/4 a share on the New York Stock Exchange after the manufacturer said a production shortfall particularly in its activewear business would slash earnings.
Sales in the sports licensing division also were expected to fall because of weak industry demand and a decline in the European market, the company said in a statement.
Fruit of the Loom said it expects revenues for the quarter ending July 3 to fall to between $570 million and $590 million, from $628 million in the same period a year earlier.
The company did not provide a specific projection of its earnings, but Wall Street had been expecting it to earn 49 cents a share, according to a survey of analysts by First Call Corp.