Pacific Sunwear Narrows Q4 Loss on Improved Sales

Spring styles at Pacific Sunwear

Spring styles at Pacific Sunwear

Anaheim, CA—Pacific Sunwear of California, Inc. said Wednesday that its fourth quarter loss narrowed as the teen retailer posted stronger sales and margins.

For the quarter ended Feb. 2, Pacific Sunwear reported a loss of $19.9 million, or 29 cents a share, compared with a loss of $38.1 million, or 56 cents a share, a year ago.

Excluding one time items such as mark-to-market derivative-liability impacts, store-closure charges and other items, Pacific Sunwear’s adjusted loss was 17 cents a share, compared with an adjusted loss of 19 cents a share a year ago. That turned out to be just one penny more than the 16 cents a share loss analysts had expected.

Net revenue increased 4.3% to $228 million compared to the $227.86 million that analysts’ expected. Comparable store sales edged up 1%. And gross margin widened to 21.1% from 19.3%.

Pacific Sunwear ended the quarter with 12% fewer stores, 644 in total. Shuttering stores along with controlling inventory levels in line with sales has been the retailer’s turnaround strategy.

“2012 was a very solid year for PacSun with important progress in several key facets of our business,” said Gary Schoenfeld, president/ceo. “We achieved positive sales comps with better margins in every quarter for the first time since 2007, continued to leverage our cost base, and equally important is my belief that we are beginning to re-establish PacSun’s unique identity tied to great brands, on trend merchandising and our distinct connection to California Lifestyle.”

Looking ahead, Schoenfeld said the key priorities “remain working closely with our key brands, attracting new customers and continuing to elevate both our in-store and on-line experience.”

 

 

 

 

Like this? Share it!

Jeff Prine

Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com