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.”