UPDATE: Oppenheimer Downgrades Pacific Sunwear to Perform

Oppenheimer is out with its report today on Pacific Sunwear PSUN, downgrading PSUN to Perform from Outperform. In its report, Oppenheimer writes, "Lowering rating to Perform. While encouraged by 2Q results (above consensus EPS of $(0.18) on a 1% comp and 7% decline in inventories), we're concerned that 3Q is off to a below-plan start and that this indicates a broader issue. PSUN has made great strides, but given the promotional environment, its improvements may be overshadowed by the competition." At the time of posting, shares of PSUN were trading pre-market at $1.86, down 14.29% from Tuesday's close.