Mossimo to Slow Expansion
IRVINE — Trendy sportswear maker Mossimo Inc. predicted its revenue for the rest of the year would be down from the same period last year, even though it is cutting costs by opening fewer stores than planned. The company said it would reduce its goal for opening new shops within department stores this year to 75 to 125. Mossimo previously had set a goal of opening 125 in-store shops. It opened 17 in-store shops in the first quarter this year, according to a report filed with the Securities and Exchange Commission. Shelly Young, an analyst with Hambrecht & Quist, said less aggressive expansion is a good move to help the company face its “very daunting” prospects.
The company last week reported a first-quarter loss of $498,000, or 3 cents a share. Sales rose slightly to $24.6 million from $24.4 million.
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