Stock Alert for Pacific Sunwear of California Inc. (PSUN)
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    Pacific Sunwear (PSUN) Shares Rise Despite Reporting Loss

    Pacific Sunwear (PSUN) Shares Rise Despite Reporting Loss

    Shares in Pacific Sunwear of California Inc. (PacSun) (NASDAQ: PSUN) traded higher Tuesday’ ahead of its latest earnings report.  The teen retailer late yesterday reported a wider loss for the fourth quarter, but that was better than analysts had expected.

    The stock added $0.28, or 12.56%, to close at $2.51, with over million 1.27 million shares traded hands during the session,

    PSUN shares have gained 13.1% in the last five days and 34.2% in the last month.  Year-to-date, the stock is down 42.0%.

    The Anaheim, Calif-based company reported a net loss of $38.1 million, or $0.56 per share, for the three months ended January 28, compared to a net loss of $35.2 million, or $0.53 per share, in the comparable quarter of last year.

    Adjusting to exclude a cost for issuing convertible stock and store closing charges, the company would have posted a net loss of $0.19 per share. Analysts expected a loss of $0.22 per share, according to a poll by FactSet.

    Revenue for the quarter came in at $234.2 million, down 1% from the previous year’s $237.6 million, and short of analysts’ expectation of $245.9 million.

    PacSun reported a net loss of $106.4 million, or $1.60 per share, for the year, up from the previous year’s loss of $96.6 million, or $1.46 per share.  The company’s fiscal 2011 revenue was $833.8 million, slightly down from the previous year’s $837.1 million, while total same-store sales dropped 1% during the period.

    “Our sales trends improved as we moved further into the Holiday Season resulting in flat comparable store sales for the quarter and an improvement in merchandise margins, compared to the fourth quarter last year,” commented Gary H. Schoenfeld, president and CEO of Pacific Sunwear. “We similarly finished the fiscal year with nearly flat same-store sales and remain focused on the key merchandising, in-store and digital initiatives that we believe are critical to successfully rebuilding the PacSun brand and our position in the marketplace.”

    PacSun expects to report an adjusted loss of $0.26 to $0.34 per share in its first quarter, wider than analysts’ loss expectations of $0.23.  Gross margins are expected to be between 17% to 20% in the quarter.

    Over the last 52 weeks, the stock has ranged from a low of $1.11 to a high of $4.42. It is currently trading above its 50-day and 200-day moving averages of $2.00 and $1.57, respectively. Market capitalization currently stands at 169.18 million and it has 67.40 million outstanding shares.

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