Shares of Pacific Sunwear of California Inc. were down 17% in midday trading as it reported a loss for its most recent quarter.
The Anaheim-based apparel and accessories retailer reported results after markets closed Wednesday that beat Wall Street expectations and shares moved more than 50% higher in after-hours trading. Early Thursday shares were also up but they’d given back all the gains and more by midday.
PacSun reported $205.9 million in revenue, a 3% dip from the $212.3 million it posted in the third quarter of fiscal year 2014. Analysts had anticipated sales of $197.97 million.
The company’s loss was $3.4 million, or 5 cents per diluted share, compared to a loss of $500,000 or 1 cent per diluted share a year earlier. Analysts expected a loss of 8 cents per diluted share.
PacSun ended the quarter with 611 stores, nine fewer than in the third quarter of fiscal year 2014.
“We have been encouraged by improving trends over the past 90 days leading to Q3 results at the high-end of our guidance, an 11% comp on Black Friday and a 1% comp for November,” President and Chief Executive Officer Gary Schoenfeld said in a statement. “While there is no shortage of challenges still to overcome, we believe that our best brands, great style positioning is creating something distinctly relevant amidst a very crowded marketplace.”
PacSun’s guidance for the fourth quarter anticipates a loss of 14 cents per diluted share to 4 cents per diluted share.
It anticipates same-store sales to decline between negative 3% and 3%, and its revenue to come in at $223 million to $237 million.
