Shares of Pacific Sunwear of California Inc. were down 8.7% in midday trading Friday after the retailer said it anticipates a third-quarter loss between 4 cents and 9 cents a share, and revenue between $203 million and $208 million. Analysts were expecting a loss of 2 cents per share on revenue of $207.1 million.
This is a further drop from after-hours trading last night, when results were announced.
The Anaheim-based company’s second-quarter net income was $7.5 million, or 10 cents per diluted share, up from $19.24 million in losses the retailer reported during the same period last year.
The second-quarter earnings include non-cash gain of $10.4 million, or 14 cents per diluted share. PacSun said it would have posted a loss of $1.8 million or 3 cents per share for the quarter if the non-cash gain is excluded along with a $1.6 million in tax benefits.
PacSun’s revenue in the quarter ended Aug. 3 was $211.7 million, slightly up from $210.1 million it posted for the second quarter of 2013. Analysts expected losses of 3 cents per share and revenue of $208.5 million for the quarter.
The company opened two stores and closed another two during the reporting period, bringing the chain’s total to 618. It had 637 stores a year ago.
PacSun traded recently at a market capitalization of $144.7 million.
