Mossimo’s Shares Dip Again as Reaction to Report Spreads

Mossimo Inc.’s shares fell again on Tuesday in New York Stock Exchange trading as shareholders continued to react negatively to word that the apparel company’s third-quarter earnings would be noticeably lower than analysts had expected.

The stock, which had been trading at $42.50 a week earlier, on Tuesday tumbled 10%, or $3.50 a share, to close at $30.50. The stock fell $7 on Monday and $5 on Friday. Mossimo Inc.’s market value has fallen to $457 million from $624 million during the three-day slump.

The company has blamed the disappointing quarterly earnings on unexpectedly high production costs for new lines of men’s and women’s wear. Mossimo is predicting earnings in the range of 14 cents to 16 cents a share for the quarter ending Sept. 30, 10 cents below what analysts had anticipated.

Company officials said the higher production costs will also hurt fourth-quarter profit, but that management has taken steps to pare costs.