Anaheim-based mall retailer Pacific Sunwear of California Inc. saw a drop in October same-store sales but upped its profit outlook for the recently ended quarter.
The company, which runs 1,120 stores selling surf-inspired clothes, urban styles and shoes, said October sales at stores open at least a year fell 0.8%.
Analysts had expected a 2.8% gain in same-store sales.
The company’s demo stores selling urban styles drove the decline with a 23% drop. Last month, Pacific Sunwear hired a financial adviser to look at selling off the struggling chain.
PacSun, the company’s dominant surfwear chain, saw a 2.3% rise in same-store sales for the month.
The company actually upped its profit outlook for the quarter through October, though it warned that charges would drive a net loss.
Pacific Sunwear now sees quarterly profits of $9.8 million to $10.5 million, up from an earlier view of about $9 million.
The forecast doesn’t include about $53 million in asset impairment and inventory charges related to its effort to sell its demo chain and its planned closure of One Thousand Steps, a shoe store chain that was started last year.
With charges, Pacific Sunwear said it expects a loss of about $20 million.
