Earnings and Losses

Pacific Sunwear widens loss in 4Q

Pacific Sunwear widens loss in 4th quarter, sales down

Clothing chain Pacific Sunwear of California Inc. reported late Thursday that its fourth-quarter loss widened as sales fell.

The teen retailer also forecast a weak first quarter, sending its shares down in aftermarket trading.

Pacific Sunwear posted a loss of $36.5 million, or 56 cents per share, for the quarter that ended Jan. 30, compared with a loss of $27 million, or 42 cents per share, for the period a year earlier. Excluding a valuation allowance, the company posted a loss of 26 cents per share.

Sales fell 17 percent to $293 million.

Analysts polled by Thomson Reuters, who typically exclude one-time items, were expecting the company to post a loss of 29 cents on revenue of $277.4 million.

CEO and President Gary H. Schoenfeld said he was pleased with Pacific Sunwear's progress, and it's young men's business could help lead a turnaround, but the company faces a tough period in its juniors' business.

For the full year, the company reported a loss of $70.3 million, or $1.07 per share, compared with a loss of $63.8 million, or 76 cents per share, the year before. Excluding one-time items, the company posted a loss of 78 cents per share for the year.

Sales fell 18 percent to $1.03 billion.

The company expects to report a loss of 50 cents to 60 cents per share for the current quarter, or 32 cents to 38 cents per share on an adjusted basis — well below analyst expectations of a loss of 15 cents per share.

Shares of Pacific Sunwear fell 87 cents, roughly 15 percent, to $4.90 after hours. They closed Thursday at $5.75, up 4 cents.

AP News |