Pacific Sunwear’s Shares Drop 16%

Pacific Sunwear of California shares took a beating in heavy trading as some institutional investors unloaded large blocks of stock in the casual-apparel retailer. The stock dropped 16%, or $4.38 a share, to close at $23.38 on Nasdaq. A total of 3.15 million shares were traded, more than eight times the average daily volume over the last three months. Officials at the Anaheim-based company say they are stumped by the sales and speculated that investors might simply be taking profits. The stock hit a 52-week high of $39.38 a share July 6. “I have no idea what’s going on,” Chief Executive Greg Weaver said. The company said its business is strong and that its earnings and sales for the second quarter were better than anticipated. Net income for the three months rose 74% to a record $5 million, or 23 cents a share, and sales climbed 52% to $73.2 million. Pacific Sunwear makes casual clothes, footwear and accessories for teens and young adults. The company operates 272 stores in 37 states.