Anaheim-based mall clothing retailer Pacific Sunwear of California Inc. beat Wall Street expectations with results for its recently ended quarter but sent investors selling with its outlook for the current quarter.
Pacific Sunwear, which runs 894 stores selling clothes inspired by surfing and skateboarding, projected a loss of $20.8 million to $24.7 million for the three months through April.
At the high end, that’s nearly triple the $9.1 million loss analysts had been expecting on average.
Pacific Sunwear’s shares were down 15% in afterhours trading on a market value of $380 million.
The forecast came on the heels of the company’s results for the three months through January.
Pacific Sunwear reported an adjusted loss of $17 million, narrowed from a loss of $27 million a year earlier.
That was better than the $19 million loss expected by analysts.
Sales came in at $293 million, down 17% from a year earlier and ahead of the $277.4 million expected by analysts.
Pacific Sunwear is in the midst of a turnaround led by Chief Executive Gary Schoenfeld, who joined last year.
“When I joined PacSun, given all that we needed to do, I knew it would take time to turn things around,” Schoenfeld said. “Eight months into the job, I’m encouraged by the changes we’re making and the prospects for PacSun to once again become a leader for teens in the mall. We’ve still got a tough period ahead of us.”
