PacSun lowers Q2 earnings guidance

US: PacSun lowers Q2 earnings guidance

By just-style.com | 23 July 2009

Retailer Pacific Sunwear of California has lowered its second quarter sales and earnings guidance after projected non-cash impairment charges doubled.

PacSun said same store sales were now expected to fall by about 24%, compared to its previous guidance of a 17-20% drop.

And, thanks to a lower effective income tax rate and higher store asset charges for the quarter, it expects to report a second quarter loss of $0.22-0.24 per share, versus the guidance figure of a $0.11-0.17 loss issued on 21 May.

PacSun said the non-cash, store asset impairment charges for the quarter were now expected to total $5.5m, about $2.7m higher than previously envisaged.

The company is due to report its second quarter results on 20 August.

Sectors: Apparel, Finance, Retail

Companies: PacSun