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Pacific Sunwear of California Inc. Message Board

  • blue_devil_ninetynine blue_devil_ninetynine Mar 20, 2013 10:39 PM Flag


    My initial thought upon seeing the results was that the guidance was not good, and the stock would decline. However the detailed transcript of the call reveals a more nuanced, and frankly positive picture. Low to mid single digit positive comps in regions other than the center and northeast is quite good, because the weather has been remarkably unseasonably cold in those two regions. So while that may not be good for Q1, the overall trends seem to be quite positive. Pretty positive sentiment on the call from my perspective. It'll be interesting to see where we go over the next couple of days. There MAY be a bit of short term selling by weak hands, but I certainly wouldn't want to be short this stock over the next six months. I'd expect very positive guidance for Q2 three months from now.

    Sentiment: Buy

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    • Well, shouldn't the new product lines be helping them more in Q1?

      • 1 Reply to longtimefollower
      • I expected them to provide guidance of +1-5% based on the new product lines, and was initially disappointed by the guidance they gave. But if you listen to the call, they are actually running positive comps in the regions that aren't adversely affected by the weather. I live in the Midwest so I know how cold it has been this year relative to last year. I just hadn't factored this into my expectations.

        Net net, I think the earnings had some negative news about Q1, but actually had positive signals for the overall health of the business. As I said earlier, I think some short-term holders might sell in the near term, but I still expect PSUN to do well for the longer term holders over the next 3-6 months. We shall see.

        Sentiment: Buy

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