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why such a violent market reaction?
On the call management pointed to an extra week in the current quarter with usually slow sales against full SG&A costs.
Apart from that the company is still in the midst of its turnaround efforts which are seemingly bearing some fruit so far but there's much more work ahead of them.
Just read the transcript of the call on seekingalpha to learn more.
Remember also that the stock made a huge comeback in the days before the earnings announcement so actually they only gave back the gains from the pre-earnings run-up and a few cents more.
Valuation appears quite cheap down here and the balance sheet looks pretty much ok so risk tolerant investors might try the stock at this price point.
But with two quarters with slow sales in front of the company the stock most likely will be dead money for some time.