Updated from 11:35 a.m.

Shares of

Gander Mountain

(GMTN)

were among the

Nasdaq's

losers Tuesday, falling 25% after the company cut its full-year earnings and sales forecast.

The outdoor specialty retailer now expects pretax income of $8 million to $13 million, down from its previous guidance of $16 million to $21 million. Comparable-store sales are now expected to be slightly negative.

Previously, the company predicted comp-store sales would grow 3% to 5%. Total sales for the year are now expected to range from $640 million to $670 million. In August, the company forecast full-year sales of $675 million to $700 million. Gander Mountain said unseasonably warm weather affected sales of outerwear and footwear, and said credit card promotions in 2004 were not as effective in driving high-ticket sales as they were a year ago. Shares traded down $4.64 to $13.91.

School Specialty

(SCHS)

fell 12.5% after the company posted second-quarter earnings and sales below Wall Street expectations. Excluding items, the educational services company posted a profit of $1.39 a share on sales of $361.5 million. Analysts surveyed by Thomson First Call were expecting a profit of $1.50 a share on sales of $361.7 million. For fiscal 2005, the company forecast a profit of $2.25 to $2.35 a share, below the $2.41 analysts had been expecting. Sales, meanwhile, are expected to be $980 million to $1 billion, in line with analysts' expectations. Shares traded down $5.29 to $37.11.

Shares of

Unisource Energy

(UNS)

fell 4.7% after an administrative judge for the Arizona Corporation Commission recommended that Arizona state regulators reject Saguaro Utility Group's merger plans with Unisource. In November 2003, Unisource agreed to be acquired by Saguaro Utility for $25.25 a share. Unisource said it is "shocked and disappointed" with the judge's recommendation.

The Arizona Corporation Commission, the company said, is not bound by the recommendation and will issue its own decision. The proposed merger has already received antitrust clearance from federal regulators and the Federal Energy Regulatory Commission. The transaction is still awaiting consideration from the ACC and the

Securities and Exchange Commission

. Shares traded down $1.16 to $23.40.

United Industrial

(UIC)

rose 9.9% after the company posted strong third-quarter results. The maker of defense-systems products earned 58 cents a share on sales of $98.7 million. A year ago, the company earned 21 cents a share on sales of $69.3 million. The jump in earnings was due to higher sales volume and higher operating margins in company's defense and energy segments. Shares traded up $3.24 to $36.

Shares of

Fossil

(FOSL) - Get Report

fell 11.6% after the company posted in-line third-quarter financial results but warned that fourth-quarter sales would fall short of expectations. The watchmaker earned 31 cents a share on sales of $236.1 million. Analysts were expecting earnings of 31 cents a share on sales of $233.2 million.

Looking ahead, the company forecast earnings of 50 cents a share on a 20% jump in sales from a year ago, implying sales of $311 million. During last year's fourth quarter the company turned in sales of $259.2 million. Analysts had been expecting fourth-quarter earnings of 50 cents a share on sales of $315.1 million. Shares traded down $3.63 to $27.76.

NYSE

volume leaders included

Lucent

(LU)

, up 2 cents to $3.67;

Merck

(MRK) - Get Report

, down 57 cents to $26;

Motorola

(MOT)

, down 26 cents to $16.67;

Pfizer

(PFE) - Get Report

, down 25 cents to $27.99;

Time Warner

(TWX)

, up 23 cents to $17.04; and

Nortel Networks

(NT)

, up 1 cent to $3.58.

Nasdaq volume leaders included

Microsoft

(MSFT) - Get Report

, up 49 cents to $29.77;

Cisco

(CSCO) - Get Report

, down 22 cents to $19.75;

Intel

(INTC) - Get Report

, down 15 cents to $23.08;

Research in Motion

(RIMM)

, up 95 cents to $78.91; and

Sirius Satellite Radio

(SIRI) - Get Report

, down 5 cents to $3.89; and

Taser International

(TASR)

, down $3.12 to $51.