Shares had tumbled 13.4% to 91 cents by midafternoon, a few cents higher than an earlier drop to 86 cents a share (its lowest point in a year).
The apparel and accessories retail chain said in a statement Wednesday that its financial position was growing untenable. Body Central noted losses and negative cash flows from operations had raised "substantial doubt" about its ability to continue as a going concern.
In its December-ended quarter, the Jacksonville, Florida-based business recorded a net loss of 74 cents a share, compared to profits of 15 cents a share in the year-ago quarter. Revenues decreased 18.3% year over year to $66.2 million.
"These results have had a negative impact on our liquidity. As a result, we have taken several actions to increase our liquidity which we believe should be adequate to finance our working capital needs through 2014, if we are successful in executing our business plan," the company said in a statement.
TheStreet Ratings team rates BODY CENTRAL CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BODY CENTRAL CORP (BODY) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow."
- You can view the full analysis from the report here: BODY Ratings Report
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