US: Pacific Sunwear records mixed Q3
- Q3 earnings reach US$17.2m
- Gross margin at $51.7m from $60.5m
- Net sales fall 4.1%
Pacific Sunwear said it expects a Q4 adjusted loss of 12 to 17 cents per share
US action sportswear retailer Pacific Sunwear of California saw its earnings soar in the third quarter, masking a decline in sales.
In the three months ended 2 November, earnings grew to US$17.2m compared with a net profit of $948,000 in the prior year period. The company benefited from a non-cash gain of $23.4m in the quarter related to derivatives.
Gross margin was at $51.7m from $60.5m last year, while sales fell 4.1% to $206.6m from $215.5m in the prior year period. The decline was down to the 53rd week retail calendar shift, the company said. Comparable store sales, however, edged up 1%.
CEO Gary Schoenfeld said: "Overall, we believe our results continue to validate the unique positioning we are establishing for PacSun as we strive to become the leading speciality retailer for great brands and on-trend fashion and fashion basics."
For the fourth quarter, Pacific Sunwear said it expects an adjusted loss of 12 to 17 cents per share on revenue of $216m to $225m. It also forecasts a near 150 basis point decrease in gross margin.
Action sports and lifestyle retailer Pacific Sunwear of California posted a marginally lower fourth quarter loss after maintaining recent increases in comparable store sales....
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