• Q3 loss of $469,000 versus $17.2m profit 
  • Sales up 4.7% to $212.3m
  • Comparable store sales rise 4%

Action sports and lifestyle retailer Pacific Sunwear of California has swung to a net loss during the third quarter, due to charges linked to loan financing the company completed in 2011. 

Net loss amounted to US$469,000 for the three months to 1 November, compared to a profit of $17.2m in the same period of the prior year.

Excluding a non-cash gain of $4.9m on derivative liability, down from the $23.4m gain a year ago, and one time charges, net loss stood at $2.2m, compared to a loss of $3.5m last year.

Sales increased 4.7% to $212.3m from $202.8m last year, while comparable store sales rose 4%. Pacific Sunwear ended the quarter with 620 stores versus 635 stores a year ago.

"We were very pleased with our Q3 comp store performance, inventory productivity and continued improvement in non-GAAP EPS," said president and CEO Gary Schoenfeld.

"With 11 straight quarters of positive comp stores sales, I believe that our elevated merchandising assortments featuring a select number of leading lifestyle brands is resonating with customers and moving us even further toward our goal of establishing the new PacSun as one of the leading specialty apparel retailers for 17-24 year-olds."

The group expects fourth-quarter adjusted loss per share from continuing operations to range from $0.17-0.12. Revenue is forecast to be between $218m and $227m, while comparable store sales are expected to be flat to a 4% rise.