• 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

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.