Share Price of Broadway Stores Tumbles 7.7% : Retailing: Decline may reflect concerns over coming earnings report, industry in general.

The stock price of Broadway Stores Inc. tumbled 7.7% in heavy trading on the New York Stock Exchange on Tuesday, prompting speculation about the future earnings of the company and other retailers.

Broadway said it did not know why the price fell so sharply, but the selloff occurred as other major retailers are reporting disappointing quarterly earnings.

The stock drop might reflect investor concern about a first-quarter earnings report the Los Angeles-based retailer is to release later this month, said Ed Johnson, an industry analyst at Johnson Redbook in New York.

“The market is not happy with retail stocks right now,” he said.

However, Broadway executives said the company’s stock price is more prone to large fluctuations because most of the shares are controlled by a relatively small number of shareholders.

“We have large investors, and when they make a decision, it can have a big effect on price,” said John Haeckel, the company’s chief financial officer.

Broadway shares closed at $6, down 50 cents. In all, 2.27 million shares were traded Tuesday, compared to the daily average of about 50,000 shares.

Broadway Stores emerged from bankruptcy in 1992 and was profitable in its latest quarter, reporting earnings of $11.9 million. For the 12 months ended Jan. 28, the company’s losses narrowed to $37.4 million from $95.9 million the year before.

The company recently invited bids on its 12 stores outside California, prompting speculation about potential buyers. The retailer also has 71 stores in California under the names The Broadway, Emporium and Weinstocks.

The retail industry has had a rocky year, including weaker-than-expected sales in April. On Tuesday, Nordstrom Inc. said its first-quarter earnings decreased 13.4%.