NEW YORK (AP) -- Shares of Body Central Corp. sank Friday after the clothing and accessories retailer reported a worse-than-expected loss for its third quarter.
THE SPARK: The company reported after the close Thursday that it lost 55 cents per share for the period. Total revenue fell 10 percent, whiles sales at stores open at least a year sank 18 percent.
It said it reduced its corporate staff by 11 percent and has started "other cost cutting measures." Those actions should reduce annualized selling, general and administrative expenses by $5 million a year, the company said.
THE BIG PICTURE: Body Central, based in Jacksonville, Fla., has 292 locations under its Body Shop and Body Central banners. Jefferies analyst Randal Konik noted that the company is working to improve its merchandise lineup. But he also said that "While we believe management's strategic plan has merit, we don't have a clear sense of when it could begin to gain traction, and cash burn is now an added concern."
He lowered his price target to $5, from $9.
SHARE ACTION: The stock was down $1.57, or 28 percent, to $4.06. Over the past year, it's down more than 46 percent.