Retailer Pacific Sunwear of California Inc. recorded a dip in income and same-store sales in its first quarter, the company said Thursday.
Total sales at the surfwear retailer rose 7.1% to $300 million in the period.
But PacSun said net income fell 32% to $11.9 million on a 1.8% drop in same-store sales, versus a year ago.
“Although the quarter was difficult, I’m encouraged with the improvement we achieved in our sales trend in April,” said Chief Executive Seth Johnson, in a statement.
The company posted a rebound in April after several sluggish months. Sales at stores open at least a year jumped a better-than-expected 14% in April.
Johnson also said PacSun expects to gain from the launch of the company’s shoe store chain, One Thousand Steps.
“We now have six stores open and are pleased with the initial customer response to our merchandise assortment and store design,” he said.
PacSun said it expects earnings growth of 10% to 15% in 2006. The company said it had 1,122 stores at the end of the first quarter, up from 1,013 a year ago.
PacSun operates stores under its own name, d.e.m.o., One Thousand Steps as well as some outlet locations.
Shares of PacSun were up 1% in afterhours trading after falling about 2% before the earnings announcement Thursday.
