Shares of mattress maker Sealy ( ZZ) were up 82.5% on Wednesday as the company announced it was cutting costs after a big drop in its quarterly profit. Sealy, whose shares were up in early afternoon trading by $1.23 to $2.72 on five times average daily volume, did surprise analysts with its fiscal first-quarter profit results, earning 5 cents a share where a 3-cent loss was expected. Stifel Nicolaus & Co. analyst John Baugh said sales declined in the U.S. and abroad. Baugh said Sealy has suffered in the past year from poorly received Stearns and Foster mattress products and overall weakness in premium mattress sales. "Sealy is not out of the woods by any stretch," Baugh, who rates Sealy hold, wrote in a client note. During the quarter, selling, general and administrative expenses declined to $96.7 million from $116.2 million last year. Baugh said he expects margins to improve in the third quarter from a new Stearns and Foster product line. Shares of Charming Shoppes ( CHRS) rose 22%, or 31 cents to $1.71 after the women's retailer said in an SEC filing that it expects to save $125 million in fiscal 2010. Footwear retailer Crocs ( CROX) saw its shares rising 17%, or 20 cents to $1.39. Crocs announced Tuesday that it had gotten a six-month extension for its existing credit facility with the Union Bank of California. Isle of Capri Casinos ( ISLE), a St. Louis-based small-cap, was rising 17%, or 88 cents to $6.17%. The company operates casinos in Lake Charles, La; and Lula, Biloxi, and Natchez, Miss., among its 14 mostly Midwest U.S. and four overseas locations.
Shares of Sonic Automotive ( SAH) were down 43 cents, or 27% to $1.17 after the auto retailer reported a loss of $685.6 million for the fourth quarter late Tuesday. The loss was $17.10 per share for the last three months of 2008. Sonic earned $23 million, or 54 cents per share, in the same quarter last year. Revenue fell 28% to $1.26 billion from $1.74 billion in the 2007 quarter.