Anaheim-based retailer Pacific Sunwear of California Inc. reported quarterly results on Thursday that cheered investors, a week after disappointing them with a drop in April same-store sales.
For the quarter ended April 30, PacSun reported net income of $17.6 million, up 18% from a year earlier. Sales for the period were up 14% to $280 million.
Sales at stores opened for at least a year grew by 3% in the quarter, PacSun said.
After years of heady growth, PacSun is wrestling with a cooling in its business selling surfwear and hip-hop clothes to teens.
Earlier this month, PacSun reported a 6.4% fall in April same-store sales, its first decline in years. The showing let down analysts who were looking for a slim increase.
The trend is a challenge for Seth Johnson, who took over as chief executive last month.
Investors likely were encouraged by PacSun’s profit gain amid slower sales growth. The company’s shares were up 5% in afterhours trading.
“We achieved a strong earnings increase through tight management of our inventory and expenses,” Johnson said.
PacSun also said its board OK’d buying back $100 million of the company’s stock.
