Anaheim-based mall retailer Pacific Sunwear of California Inc. reported results for its recently ended quarter that beat Wall Street? expectations but warned that results for the current quarter would fall below expectations.
The company, which runs stores selling surf-inspired clothes, reported a loss of $8.7 million for the three months through May 2, down from a loss of $12 million a year earlier.
Analysts on average expected a loss more than twice as big at $19.4 million.
Sales for the three months were $223.5 million, down 16% from a year earlier but topping a consensus forecast of $214 million.
Pacific Sunwear was able to limit its loss by cutting costs and managing the amount of clothes on hand at stores, Chief Executive Sally Frame Kasaks said.
The company is working through the worst retail downturn in recent memory.
For the current three-month period through July, Pacific Sunwear said it expects a loss of $7.3 million to $11.3 million.
Analysts had been expecting a loss of $6.7 million.
Same-store sales, a measure of sales at stores open at least a year, are seen declining 17% to 20% from a year earlier.
Same-store sales fell by 18% in the recently ended quarter.
