Anaheim-based mall retailer Pacific Sunwear of California Inc. saw a steeper than expected fall in October sales and warned of a quarterly loss, while Foothill Ranch-based Wet Seal Inc.’s decline came in better than expected.
Pacific Sunwear, which sells clothes inspired by surfing and skateboarding, said October sales at stores open at least a year fell 11%.
Analysts were looking for a decline of 6.6%.
The company now expects a loss for the quarter that ended Saturday. Pacific Sunwear could lose $4.6 million to $5.3 million, including $3.9 million in onetime charges.
Wall Street had been expecting Pacific Sunwear to break even for the quarter.
Last month, the company warned analysts that it expected profits to be at the low end of its expectations, from break even to $3.3 million.
Sales for the recently ended quarter were off 5% to $323.6 million, versus the $320 million expected on Wall Street.
Pacific Sunwear, which runs 940 mall stores and outlets, has been among the hardest hit in the retail downturn.
As the economy has slowed, the company’s clothes have failed to win over shoppers who are spending less.
The 80% drop in Pacific Sunwear’s shares in the past 12 months is the worst among similar retailers. Pacific Sunwear has a market value of about $210 million.
The company’s slump prompted a long shot buyout bid last month from small retailer Adrenalina of Miami, which offered to pay $329 million in cash and stock. Pacific Sunwear rejected the offer.
Wet Seal, which runs mall stores selling clothes for girls and young women, saw October same-store sales fall 6.2%, better than the 8.6% expected by analysts.
The company’s smaller Arden B chain for young women drove the decline with a 27% drop. Some analysts have suggested that Wet Seal look at selling the chain.
Wet Seal is managing costs and clothes at its Arden B stores, Chief Executive Ed Thomas said. It also has cut prices at the stores.
Its larger Wet Seal chain for girls saw October sales rise 4%.
The company said it still excepts to come in at the high end of its profit forecast for the recently ended quarter. Wet Seal expects a profit of $4.8 million to $6.7 million.
Analysts on average expect a profit of $5.7 million.
Sales for the recently ended quarter were down 2.4% to $147 million.
Wet Seal shares were up nearly 5% in early afternoon New York trading with a market value of $270 million.
