Pacific Sunwear 2Q loss narrows on higher sales

Pacific Sunwear posts smaller 2nd-qtr loss on sales growth, beats Wall Street predictions

Associated Press

ANAHEIM, Calif. (AP) -- Surf-themed clothing retailer Pacific Sunwear of California Inc. said Wednesday its second-quarter loss narrowed, helped by increased sales.

For the quarter ended July 28, the Anaheim, Calif.-based company posted a loss of $17.5 million, or 26 cents per share, compared with a loss of $19.3 million, or 29 cents per share, in the same quarter last year.

The recent quarter's results included a non-cash loss of 12 cents per share related to the issuance of preferred stock. Excluding that and adjusting to use a normalized tax rate of 37 percent, the company said it posted an adjusted loss of 8 cents per share.

Revenue rose almost 5 percent to $210.3 million, from $200.9 million last year.

The results were better than Wall Street expected. Analysts, on average, expected a loss of 12 cents per share on $203.1 million in revenue, according to FactSet. Analyst estimates typically exclude one-time gains and charges.

The company said its revenue at stores open at least a year rose 5 percent. The metric is a key measure of a retailer's health, because it excludes sales at stores that opened or closed during the year.

That increase included 7 percent growth at the company's men's business and a 2 percent increase in women's sales. Online sales rose 15 percent, the company said.

For the third quarter, Pacific Sunwear said it expects to post adjusted results between breakeven and a loss of 8 cents per share. Analysts expect a loss of 4 cents per share, with estimates ranging from a loss of 8 cents to a profit of 2 cents per share.

Pacific Sunwear shares rose 10 cents, or 4.6 percent, to $2.27 in aftermarket trading. The stock closed the regular session down a penny at $2.17.

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