Anaheim-based mall retailer Pacific Sunwear of California Inc. saw sales at stores open at least a year fall in July, missing Wall Street’s expectations.
Pacific Sunwear, which runs stores selling surf-inspired clothes, said same-store sales fell 4% last month.
Weak sales of swimwear, shorts and accessories were to blame, Pacific Sunwear said.
Analysts on average had expected a 0.4% increase, according to Thomson Reuters.
Total sales for July fell 3% to $99 million.
Shares of Pacific Sunwear fell about 4% on the news before rebounding in Friday’s rally. It had a recent market value of about $550 million.
Pacific Sunwear updated its profit outlook for the three months through early August.
The company said it expects a profit from continuing operations $3.4 million to $4.1 million, up from analysts’ average expectation of $3.4 million.
Results are due in coming weeks.
Pacific Sunwear is undergoing a restructuring in which earlier this year it closed a smaller chain of stores selling urban-style clothes and a shoe store chain.
The company now focuses on its PacSun stores selling clothes inspired by surfing and skateboarding.
Pacific Sunwear is upgrading the appearance of its stores to boost sales from about $350 per square foot now to $500, according to Robert W. Baird. & Co. analyst Mitch Kummetz.
“So far, Pacific Sunwear seems to be heading in the right direction with its turnaround,” he said in a note to clients last week.
