Mar 14, 2012
Pacific Sunwear posts narrower-than-expected loss
Mar 14, 2012
Teen retailer Pacific Sunwear of California Inc posted a narrower-than-expected loss for the fourth quarter, helped by higher merchandise margins.
However, the company, which sells clothing inspired by the fashion and lifestyle of California, forecast a bigger-than-expected loss for the first quarter as gross margins are likely to fall.
Fourth-quarter loss widened to $38.1 million, or 56 cents a share, from $35.2 million, or 53 cents a share, last year.
Excluding items, Anaheim, California-based PacSun posted a loss of 19 cents a share.
Sales fell about a percent to $234.2 million.
Analysts polled by Thomson Reuters I/B/E/S expected a loss of 22 cents a share on revenue of $245.4 million.
The cash-strapped company, which has grappled with falling sales and margins , received a $60 million loan from private equity firm Golden Gate Capital last December.
PacSun sees a first-quarter loss of 26 to 34 cents a share. Analysts were expecting a loss of 24 cents a share.
The company said gross margins are likely to come in at 17 to 20 percent in the quarter, compared with 19 percent in the year-ago period.
PacSun's shares, which have lost more than 45 percent of their value in the past year, closed at $2.51 on Tuesday on the Nasdaq. (Reporting by Ranjita Ganesan; Editing by Joyjeet Das)
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