Day Runner Inc. stock fell 20% Tuesday after the maker of calendar-organizers said its second-quarter earnings will be below Wall Street expectations and that sales will fall below year-earlier results.
The company said its results are being hurt by lower-than-expected sales to Wal-Mart Stores Inc. and inventory tightening by some other large customers. Day Runner said it expects second-quarter sales of $34 million to $36 million, down from $40.1 million a year ago.
The company said logistic problems with restocking its displays at Wal-Mart stores continued to hold down sales, particularly in December. Day Runner added it is working with Wal-Mart to correct the problems.
The company said it expects higher consumer purchases to help sales for the second half of the fiscal year.
Day Runner said it expects to earn between 63 cents and 68 cents a share in the three months ending Dec. 31, compared with 75 cents for the year-ago second quarter. Analysts surveyed by First Call Inc. had forecast earnings of 91 cents a share for the latest period.
Day Runner stock closed at $19.25, down $4.75 on the Nasdaq Stock Market. Earlier in the session, the shares were as low as $15.375.