U.S. Markets closed

Pacific Sunwear revenue gains cheer investors

ANAHEIM, Calif. (AP) -- Pacific Sunwear of California Inc.'s shares soared 18 percent in after-hours trading Wednesday after the teen retailer's fiscal first-quarter revenue came in ahead of expectations and it issued a solid forecast for the second quarter.

The company, based in Anaheim, Calif., sells surf and skate-inspired clothing.

After the close of trading on Wall Street, Pacific Sunwear reported a loss of $24.2 million, or 35 cents per share, for the quarter that ended May 4. That's compared with a loss $15.6 million, or 23 cents per share, in the same quarter last year.

After adjusting for items including store closure costs and a derivative liability, the company lost 14 cents per share from continuing operations versus 20 cents per share last year.

Revenue for the period increased to $169.8 million from $162.3 million.

Analysts polled by FactSet were anticipating an adjusted loss of 18 cents per share on revenue of $166.5 million.

Pacific Sunwear President and CEO Gary Schoenfeld said that the spring selling season started off slow, but the company is pleased with the quarter overall. He said the results are a validation of the company's turnaround efforts, which it began in 2011 and have led to fewer stores and improved merchandise to draw shoppers.

The company said that its revenue from stores open at least a year increased 2 percent. That is considered a key indicator of a retailer's financial performance as it strips away the impact of recently opened or closed stores.

Pacific Sunwear ended the quarter with 638 stores, down from 729 at this time last year.

The company said it expects its adjusted per-share results for the second quarter to come in between a profit of 2 cents per share and a loss of 5 cents per share. Analysts had forecast a loss of 5 cents per share for the period. It anticipates revenue between $209 million and $219 million for the second quarter; analysts had forecast $198.6 million.

Pacific Sunwear's shares jumped 52 cents to $3.44 in after-hours trading. The company's share value has more than doubled since this time last year.