Avery Dennison ( AVY) badly missed Wall Street expectations in the first quarter, hurt by lagging retail sales. The Pasadena, Calif., company, which makes adhesive labels and other office products, posted earnings of $11.4 million, or 11 cents a share, well below analysts' estimates of 22 cents, as compiled by Thomson Reuters. The numbers exclude a series of special items, including restructuring charges, asset impairment write-downs and debt-retirement costs. With those items, the company lost $46.2 million, or 46 cents a share, compared with a profit in the year-ago period of $69 million, or 69 cents a share. Revenue fell 13% to $1.43 billion from $1.65 billion last year. "Business conditions remain weak, particularly in the retail sector," said Dean A. Scarborough, president and chief executive, in a statement. "However, the decline moderated after a very weak January." The company said it began a cost-cutting program in the fourth quarter -- including layoffs of 10% of its global workforce -- designed to produce savings of $150 million across 2009. But the company will need to take $130 million in cash restructuring charges related to those measures, "the majority" of which it will incur in 2009. In addition, the company said that an internal goodwill-impairment test would "likely" lead to a further write-down, which, in turn, could force the company to revise first-quarter results when it files its 10-Q with the Securities and Exchange Commission. In late afternoon trading Tuesday, Avery Dennison stock was down about 4% to 28.13.