Cache shares fall on weak 3Q guidance

However, the New York-based company also said same-store sales increased in June and raised its second-quarter guidance.

For the third quarter, the company expects a profit of a penny to 2 cents per share, while analysts expect profit of 4 cents per share, according to Thomson Financial.

Roth Capital Partners analyst Elizabeth Pierce said in a phone interview on Wednesday that she was not surprised the company's shares were down.

"This is the first time they've given (third-quarter) guidance, and it's below consensus, so there is pressure on the shares," she said. "Our take is they're coming up against their most difficult compares for the third quarter, so I understand why they would want to be cautious."

Pierce reiterated a "Buy" rating on the stock.

"While we remain concerned about the overall weakness in the current retail environment and the lack of any real

visibility about consumer spending, we believe the company's merchandising strategy coupled with its marketing strategy will continue to drive sales," she wrote in a client note on Wednesday.

Shares fell $1.05, or 8.3 percent, to $11.63 Wednesday. The stock has traded between $8 and $19.04 during the past 52 weeks.