Racing Champions Shares Go Into Reverse

Could the NASCAR craze be sputtering?

Racing Champions Corp. shares plunged 60% on Wednesday after the maker of NASCAR die-cast replicas warned of a second-quarter loss on slower sales.

The Glen Ellyn, Ill.-based company’s shares fell $10.19 to $6.69 in trading of 9.3 million shares, more than 82 times the three-month daily average.

The company said it expects a second-quarter loss of 30 cents to 35 cents a share, excluding a charge. It blamed slower sales growth for its die-cast replicas compared with last year, the 50th anniversary of the National Assn. for Stock Car Auto Racing, or NASCAR. It also cited weak direct-marketing sales.

The company, whose stock had raced ahead 36% this year to a peak of $18.25 in late May, was expected to earn 17 cents for the quarter, according to First Call.

NASCAR “has been touted as such a great industry by the media, and to have them come out with this earnings announcement caught people off guard,” said Eric Wold, an analyst with First Security Van Kasper in San Francisco.