Pacific Sunwear of California Inc. beat analysts’ expectations for the fourth quarter, which ended Jan. 31, before its stock fell about 2% to $2.82 and a market value of about $195 million in midday trading Thursday.
PacSun reported results after markets closed Wednesday.
The Anaheim-based action-sports retailer reported $231.6 million in sales, a 5.9% increase over $218.6 million for the same period in fiscal 2013. Analysts had anticipated $229.4 million.
Its same-store sales were up 6%, the 12th consecutive reporting period with same-store gains, according to President and Chief Executive Gary Schoenfeld.
The company said its full-year sales added up to $826.8 million, a 3.6% increase over the $797.8 million in fiscal 2013. Same-store sales increased 3%.
PacSun reported a $26 million loss from continuing operations in the fourth quarter, or 38 cents per diluted share, compared to $22 million, or 32 cents per diluted share, in the same period a year ago. That included a charge stemming from a $60 million term loan with Golden Gate Capital.
PacSun’s loss was $7.1 million without the charge, or 10 cents per diluted share. Analysts anticipated a loss of 10 cents per diluted share. That compares to $11.8 million, or 17 cents per diluted share, in the same period a year ago.
The company narrowed its losses from the $47 million, or 69 cents per diluted share, it had in fiscal 2013, to $29.4 million, or 42 cents per diluted share.
Its full-year loss would be $18.5 million, or 27 cents per diluted share, without the term loan charge and assuming a tax benefit of approximately $10.9 million. That compares to a loss from continuing operations of $23.1 million, or 34 cents per diluted share for the 2013 fiscal year under the same terms.
PacSun said the “disruption at the Southern California ports, coupled with severe cold weather in many parts of the country has adversely affected comparable store sales” in the current quarter. It expects revenue of $167 million to $173 million and a loss per diluted share of between 11 cents and 14 cents.
