Anaheim, CA—Shares of Pacific Sunwear of California Inc. were down 9% in after hours trading Thursday following the brand’s disappointing second quarter results.
For the quarter ended August 3, the company posted a loss of $19.2 million compared with a loss of $17.5 million a year ago. Excluding one-time costs, adjusted earnings were a profit of $1.2 million, or 2 cents a share, beating analysts’ estimate for flat earnings.
Net revenue rose about 9% to $215.2 million, narrowly missing analysts’ expectation of $215.74 million in sales. Comparable store sales were up 3%.
“We are pleased with our strong performance as evidenced by our sixth consecutive quarter of both positive comparable store sales growth and higher merchandise margins,” said Gary H. Schoenfeld, president/ceo. “We believe our customers are beginning to recognize and appreciate our diverse lens toward California lifestyle and our curated assortment of great brands and distinctive style which together are reestablishing PacSun’s unique identity.”
For its third quarter outlook, PacSun forecast a loss of 4 cents to 9 cents a share on sales of $202 million to $209 million. Analysts’ estimate forecast flat earnings on sales of $215.66 million.