PacSun Narrows Q4 Loss, Beats Estimates

PacSun's Spring campaign was shot in Joshua Tree, Calif.

PacSun’s Spring campaign was shot in Joshua Tree, Calif.

Anaheim, CA—Pacific Sunwear of California (PacSun) saw its shares increase in early trading today after posting late Tuesday afternoon a narrowed fourth quarter loss and a positive forecast.

For the quarter ended Feb. 1, the teen-oriented specialty retailer posted a net loss of $22.5 million, or 33 cents a share, compared with a loss of $19.9 million, or 29 cents a share, a year ago. But excluding one-time costs, adjusted loss was 17 cents a share, ahead of analysts’ estimate for a 19 cents a share loss.

‘Significant Improvements’

Net revenue was down 1.9% to $218 million, yet still ahead of analysts’ estimate for $212 million in sales. Comparable store sales were down 2%.

Earlier this year, PacSun warned that its fourth quarter would be lowered than originally predicted given the impact of winter storms the last two months and the promotional atmosphere at retail.

“We continue to be encouraged by our positive momentum within a challenging retail environment throughout the year, marked by eight straight quarters of positive comparable store sales, sustained gross margins, and reduced operating costs, all contributing to a significant improvement in our operating performance compared to fiscal 2012,” said Gary Schoenefeld, president/ceo.

PacSun continues to see improvement ahead, too.

For its first quarter, PacSun predicts revenue in the range of $169 million to $174 million, ahead of analysts’ consensus for 4168 million. Comp store sales are expected to rise 1% to 4%. Gross margin is expected to improve to 25% to 27%.

Meanwhile, estimated per share loss will be between 12 to 17 cents a share in line with analysts’ estimate.

 

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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