• Company swings to Q3 profit of $948m
  • Sales climbed 0.7% to $228.4m
  • Q4 revenue to be between $225m and $235m 
Pacific Sunwear of California reported a 0.7% increase in third-quarter sales

Pacific Sunwear of California reported a 0.7% increase in third-quarter sales

Teen sportswear retailer Pacific Sunwear of California has swung to a third-quarter profit after Black Friday comparable store sales growth.

Net income reached $948m for the quarter ended 27 October, compared to a loss of $17.6bn the year before.

Excluding $1.7m in store closure related charges and a one-off gain of $5.6m, losses from continuing operations narrowed to $1.8m, compared to a $7.1m loss the prior year.

Net sales edged up 0.7% to $228.4m, compared to $226.8m the same period last year, while same-store sales climbed 1%.

"We continue to see evidence of our turnaround strategies taking hold with our third straight quarter of positive comparable store sales growth and a 260 basis point improvement in merchandise margins, on an adjusted basis," said CEO and president Gary Schoenfeld.

"After a slow start to the first few weeks of back-to-school, we performed well during the peak of the selling season which translated to our first positive sales comp in the third quarter since 2007 and a more than $10m improvement in our pre-tax operating results."

"With high single-digit comps on Black Friday, we finished the month of November at a 1% sales comp, similar to the third quarter," Schoenfeld added.

The retailer expects fourth-quarter revenue to be between $225m and $235m, while adjusted loss per share from continuing operations is forecast to range from $0.09 to $0.17.