Shares of Pacific Sunwear of California Inc. slumped as much as 10% a day after the Anaheim-based mall clothing retailer warned of a bigger than expected loss for the current quarter, but rebounded with a recovering Wall Street later on Friday.
Pacific Sunwear’s stock had regained ground to be about flat at the trade of closing on a market value of about $300 million.
The stock turned around with shares of other retailers after investors seemed to look past disappointing outlooks and focused on recent quarterly gains at Pacific Sunwear and others.
The company also seemed to have benefited from better spirits on Wall Street overall, which saw a rebound after big losses Thursday.
The company, which is working on a long-running turnaround, forecast an adjusted loss of $14.5 million to $18.5 million for the three months through July.
Wall Street analysts on average had been forecasting a loss of $11.2 million for the current three months.
Pacific Sunwear runs 883 stores across the country selling clothes inspired by surfing and skateboarding.
The company is a major seller of clothes from Orange County companies such as Quiksilver Inc., Volcom Inc. and others.
The forecast came Thursday with Pacific Sunwear’s results for the three months through April.
For the recently ended quarter, Pacific Sunwear reported an adjusted loss of $20 million, widened from a loss of $9 million a year earlier.
But that was better than the $23 million loss analysts were expecting on average.
The company reported revenue of $190 million, down 15% from a year earlier but topping the $186 million analysts were expecting.
“While having a lot still to accomplish, we continue to be optimistic about the prospects for sequential quarterly improvements,” Chief Executive Gary Schoenfeld said.
