ClothesTime, an Anaheim-based operator of discount women's apparel stores, said net income for its fiscal 1987 first quarter was up 32% to $1.8 million, from $1.4 million a year ago. Revenue for the quarter ended April 27 increased 13.2% to $31 million from $27.6 million.
Despite the improved performance, however, the price of ClothesTime's common stock dropped $1 a share Thursday to close down 5.5% in over-the-counter trading at $17.25 on a volume of 365,000 shares. On May 5, after the company told industry analysts it was predicting a 13% sales gain, the stock price dropped $1.50 a share to close at $18.25 on a volume of almost 500,000 shares.
Chief financial officer Bill Mowbray said the stock activity was spurred by earlier analysts' projections that the company's sales would increase about 25% for the quarter. The two selling sprees came because the 13% figure released by the company was considerably lower than the analysts' projections. He said a spell of cold, rainy weather in March kept shoppers away, cutting into sales and profits.