Pacific Sunwear’s Profit Picture Gloomy

Casual apparel retailer Pacific Sunwear of California Inc., gripped by sluggish sales, warned Thursday that second-quarter earnings will fall below expectations.

The Anaheim company was among a number of apparel chains, including Gap Inc., that suffered languishing sales amid piles of discounted summer apparel. But clothing retailer Wet Seal Inc. in Foothill Ranch bucked the trend, logging higher sales.

Pacific Sunwear, which sells many brands made by Southland surf and skate wear companies, said it expects to post earnings of 11 cents a share, a bit lower than the company estimated in mid-July. Analysts were estimating earnings of 13 cents a share for the three months, according to a survey by Thomson Financial/First Call. The company earned 23 cents a share in the second quarter last year.

Sales at stores open at least a year--a key indicator of industry performance--fell 5.3% in July.

“July results were disappointing but improved over May and June,” Greg Weaver, the company’s chairman and chief executive, said in a release. He noted that July “is mostly a clearance month” for spring and summer merchandise.

The stock moved up 50 cents to $18.04 a share, however, in Nasdaq trading.

Wet Seal said same-store sales rose 4.5% last month, while total sales climbed 12.3% to $44.3 million. Same-store sales rose 3.4% in the second quarter, and total sales were up 5.8% to $135.6 million.

The company benefited from strong demand for fashion denim but experienced weakness in accessories, Chief Executive Kathy Bronstein said in a statement.

The stock climbed $1.70 to $15.40 on Nasdaq.

Pacific Sunwear had warned in mid-July that its earnings were going to fall at the low end of the estimated range of 13 cents to 17 cents a share because of weak sales of summer clothing.

The retailer’s total sales in the four-week period ended Aug. 5 were $56.5 million, up 30.2% from the year-earlier period. Total sales for the second quarter rose 18.6% to $132 million.