Pacific Sunwear of California Inc. is expected to report a quarterly operating loss Tuesday as the clothing retailer continues to battle declining sales, an analyst said Monday.
Robert W. Baird & Co. analyst Mitch Kummetz said he expects the company to report a loss of $649,500 before charges for the three months through October.
Analysts surveyed by Thomson Reuters on average predict the company to report an operating profit of $649,500.
Earlier this month, Pacific Sunwear warned of a pending net loss for the recently ended quarter after sales fell sharply in October.
Pacific Sunwear’s sales at stores open at least a year fell 11% last month, far exceeding the 6.6% decline that analysts predicted.
The company expects to lose $4.6 million to $5.3 million for the recently ended quarter, including $3.9 million in onetime charges
Pacific Sunwear’s results are due after the market closes Tuesday.
Investors seemed to shake off the analyst’s report and sent Pacific Sunwear shares up about 5% Monday on a market value of about $80 million.
The company has seen its stock fall about 90% for the year, one of the worst drops among similar retailers.
Pacific Sunwear, which runs some 940 mall stores and outlets, has been working on a turnaround for more than a year after closing a shoe store chain and stores selling urban-style clothing.
