Shares of Pacific Sunwear of California Inc. were down about 11% in Friday trading to a $110 million market cap as the Anaheim-based apparel retailer reported lower-than-expected revenue for the first quarter of fiscal 2015.
PacSun also posted a 2% decline in same-store sales, its “first quarterly negative sales comp in more than three years,” according to company President and Chief Executive Gary Schoenfeld.
The retailer’s revenue for the quarter ended May 2 was $166.5 million, down from the $171.1 million it reported for the same period last year. Analysts expected $170 million.
PacSun narrowed its loss to $3.5 million, or 5 cents per diluted per share, compared to a net loss of $10.4 million, or 15 cents per diluted share, for the first quarter of fiscal 2014. Analysts anticipated a net loss of 11 cents.
The loss figure includes a noncash gain of $9.1 million, or 13 cents per diluted share, according to the company.
PacSun’s guidance for the second quarter ranges from a loss of 5 cents per diluted share to net income of 1 cent per diluted share. It anticipates same-store sales to be between a 4% decline to flat, while its revenue is expected to come in at $201 million to $209 million.
“Some key categories including shorts and non-apparel have underperformed, which is also reflected in our near-term outlook for the second quarter,” Schoenfeld said in a statement.
He said the company believes “the strength of several key brand initiatives, coupled with anticipated growth in long bottoms will get us back to positive comp store sales along with further increases in margins.”
PacSun ended the quarter with 605 stores, 13 fewer than a year earlier.
