Shares of Anaheim-based Pacific Sunwear of California Inc. fell in after-hours trading after the mall retailer issued a cautious outlook for the current quarter.
The company’s shares were down about 8% in after-hours trading Tuesday to a market value of about $145 million.
Pacific Sunwear operates a chain of about 820 stores nationwide selling clothes and accessories from several local apparel companies inspired by surfing, skateboarding and snowboarding. Those labels include Huntington Beach's Quiksilver Inc., O'Neill Clothing USA of Irvine and Costa Mesa-based Volcom Inc.
Pacific Sunwear has been working toward turnaround for the past couple of years, playing up many big name action sports brands and launching collaborations with independent designers while closing some stores.
Lingering concerns related to “macroeconomic pressure, along with a highly promotional start to the back-to-school season” have caused the company to be more cautious in its near-term outlook, Chief Executive Gary Schoenfeld said in a statement.
Pacific Sunwear projected loss for the three months through October of $10.6 million to $19.3 million. Analysts had expected a loss of $3.3 million.
The company lost $7 million for the same period a year earlier.
Pacific Sunwear didn’t provide guidance on revenue for the current quarter.
Wall Street analysts expect revenue of $252.4 million.
The company projects sales at stores open at least a year to see declines in the mid- to high-single digits in the current quarter.
The outlook follows the company’s earnings results for the three months through July.
Pacific Sunwear’s loss of $19.3 million missed the $16 million loss analysts on average expected.
The company beat Wall Street on revenue with $214.9 million in sales, up nearly 2% from a year earlier.
Analysts on average expected revenue of $211.8 million.
The company continued the positive same-store sales trend it reported during the quarter ending in April.
“We continued to make progress in the second quarter as evidenced by our results, which included our second consecutive quarter of positive comps, better than expected merchandise margins, reduced inventories, and further reductions in operating expenses,” Schoenfeld said.