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Heelys Hammered

Shares plunge on a soft forecast.

Heelys (HLYS) plunged 33% in late trading after the wheeled sneaker company warned of soft second-half results.

The Dallas-based company said it expects to make 28 cents to 30 cents a share for the third quarter, on revenue of $55 million to $58 million. Analysts surveyed by Thomson Financial were looking for a 38-cent profit on sales of $68 million.

"The company noted that it is experiencing challenges at retail related primarily to an over-inventoried position of product at many of the company's domestic accounts which will have a significant adverse affect on its fourth quarter 2007 results," Heelys said. "Based on these factors, the company now expects net sales and net income growth of 10% - 15% in 2007 versus 2006."

Analysts were looking for full-year sales growth of 45%.

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Shares tumbled $7.39 to $14.60.