PacSun shares drop after loss
Pacific Sunwear of California Inc. suffered a major wipeout Tuesday, a day after posting a loss and releasing a sales forecast that missed expectations.
The Anaheim teen retailer, which sells surf- and skate-inspired apparel and accessories, saw its shares plummet $1.13, or 22.6%, to $3.88.
The chain reported after the markets closed Monday that it lost $10.9 million, or 17 cents a share, in its third quarter ended Oct. 31. That compared with a loss of $3.5 million, or 5 cents, in the same quarter last year.
“We’ve since seen a precipitous decline across both genders during the last two weeks of the third quarter and into the first two weeks of the fourth quarter,” Chief Executive Gary Schoenfeld said. “Thus, while we still expect an improvement over the fourth quarter last year, we remain intently focused on several key initiatives toward getting this company turned around.”
Sales totaled $268.3 million, a 17.1% drop from the year-earlier period. Sales at stores open at least a year, known as same-store sales and an important measure of a retailer’s health, declined 18%.
For the fourth quarter, Pacific Sunwear said it expected same-store sales to drop by a low-twenties percentage and forecasted a loss of about 28 cents to 35 cents a share.
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