Aug 20, 2009
Pacific Sunwear posts second quarter loss
Aug 20, 2009
Aug 20 (Reuters) - Teen-clothing retailer Pacific Sunwear of California Inc (PSUN.O) swung to a second-quarter loss, which was a cent narrower than market expectations helped by better cost-cutting efforts.
Pacific Sunwear - Photo: pacsun.com
The surf-inspired retailer also said that it expects a third-quarter loss of 16 cents a share to 23 cents a share, assuming same-store sales will fall in the high-teens to low twenties, and assuming store asset impairment charges of about $10 million.
Analysts on average were expecting a loss of 9 cents a share, before special items, according to Reuters Estimates.
Many apparel retailers have struggled as consumers, hammered by falling home values and the recession, hold off on buying clothes and accessories, or look for heavy discounts.
PacSun has slashed its capital expenditure budget for 2009 by more than $50 million, cut jobs and reduced inventories to control costs.
The Anaheim, California-based company posted second-quarter net loss of $14.2 million, or 22 cents a share, compared with a profit of $2.8 million, or 4 cents a share, last year.
Revenue fell 22.3 percent to $242.8 million. Selling, general and administrative expenses fell 12.1 percent to $79.3 million.
Analysts were expecting a loss of 23 cents a share, before special items, on revenue of $239 million.
Shares of the company were down 9 cents at $3.90 after the bell. They closed at $3.99 Thursday 20 August on Nasdaq. (Reporting by Mihir Dalal in Bangalore; Editing by Maju Samuel)
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