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Pacific Sunwear Results In Line, Warns for Current Quarter

Anaheim-based mall retailer Pacific Sunwear reported a slim quarterly profit before charges Monday that met Wall Street expectations, but the company also warned about the current quarter.

The struggling seller of clothes inspired by surfing reported an operating profit of $649,000 for the three months through Nov. 3, which matched what analysts were looking for.

With discontinued business charges and other items, Pacific Sunwear lost $2.4 million.

Sales continued to slide but came in better than expected.

Pacific Sunwear reported revenue of $323.6 million, down 5% from a year earlier but better than the 6% decline analysts had predicated.

“It’s been well reported that consumer spending decelerated significantly in the September/October period, and we certainly saw this in our own results for the quarter,” Chief Executive Sally Frame Kasaks said.

The company plans to cut the amount of clothes it carries and other expenses, Kasaks said.

Pacific Sunwear is slashing prices on unsold clothes, which led the company to lower its outlook for the current quarter through January.

It now sees a loss of $1.9 million to $5.2 million for the quarter, versus a profit of $4.5 million expected by analysts.

The company’s forecast includes a gain for the sale of Pacific Sunwear’s Anaheim distribution center.

Shares were down about 5% in afterhours trading on a market value of $90 million.

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