Day Runner Anticipates Third-Quarter Stumble

Day Runner Inc. said Thursday it expects to record larger-than-anticipated losses for the current quarter as retailers remain cautious about stocking up on products in advance of demand.

This “inventory tightening” will result in a loss of 35 cents to 40 cents a share for the fiscal third quarter ending March 31, the Irvine-based company said. In the comparable period last year, Day Runner earned 9 cents a share.

Some analysts had predicted the company, which makes personal organizers, would lose 16 cents a share for the quarter. But Day Runner said analysts who had recently updated their projections were anticipating a loss of 20 cents to 22 cents a share.

Sales are expected to hit $33 million to $35 million, an increase over last year’s third-quarter sales of $29.4 million, but still lower than anticipated.

The next quarter also will likely be “difficult,” Day Runner said, but consumer demand for its products remains healthy and the longer-term outlook is bright. The company expects to begin shipping some new products in the next quarter.

Day Runner’s stock closed at $13.25 on Thursday, down 6 cents, in Nasdaq trading. The projections for the quarter were released after the market closed.