It’s a Bad-Fit Day for Shares of Pacific Sunwear

Investors were not about to try on shares of Pacific Sunwear of California Inc. Wednesday, at least not after what happened with Abercrombie & Fitch Co. the day before, one Wall Street analyst said.

Pacific Sunwear is on track to report solid financial results and ought to be a “screaming buy,” said Elizabeth Pierce, an analyst with Wedbush Morgan Securities Inc.

Instead, the Anaheim apparel maker saw its shares fall 12% Wednesday, losing $3 to close at $21.38 a share.

PacSun is not alone. Investors are not enamored with retail operations, especially the clothing industry, right now. Shares of Abercrombie fell 22% Wednesday, even after it reported earnings that met Wall Street expectations of 73 cents a share.

A slew of analysts downgraded Abercrombie early Wednesday, sending the stock to a 52-week low of $15.25 a share.

With net income at Wal-Mart Stores Inc. edging estimates by only a penny a share and industry bellwether Gap Inc. yet to report earnings, Pierce thinks investors will bide their time.

She believes that Pacific Sunwear may founder a bit as other companies in the industry declare earnings before the company’s Feb. 29 scheduled release date.

Pacific Sunwear Chief Executive Greg Weaver declined to comment on the stock drop. But a company spokesman blamed it on falling stocks elsewhere in the apparel industry, particularly in retail.

“If you look at Abercrombie [& Fitch] and you look at everybody, that’s what’s happening,” he said. “They’re knocking them all down today.”