Investors sent shares of Anaheim-based mall retailer Pacific Sunwear of California Inc. down almost 9% in midday New York trading Friday, a day after the company warned of larger-than-expected losses for the current quarter.
The company, which runs stores selling surf-inspired clothes, is predicting a $7.3 million to $11.3 million loss for the current quarter?orse than the $6.7 million loss analysts had been expecting.
More upbeat sales for the three months through May 2 didn? buoy the stock of the company, which has a recent market value of $251 million. PacSun reported a loss of $8.7 million for the three months through May 2, up 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.
