• Q2 loss narrows to $19.3m from $23.5m
  • Net sales fell 1.6% to $214.9m
  • Same-store sales increased 1%

A slight rise in same-store sales has helped Pacific Sunwear of California Inc narrow its second quarter loss, but the teen fashion retailer said it is being more cautious in its third quarter outlook.

"We continued to make progress in the second quarter as evidenced by our results, which included our second consecutive quarter of positive comps, better than expected merchandise margins, reduced inventories, and further reductions in operating expenses," said president and CEO Gary Schoenfeld.

"Until recently we had expected this positive momentum to continue, yet we are now more cautious in our near term outlook due to a combination of factors including macroeconomic pressure, along with a highly promotional start to the back to school season."

Looking ahead to the third quarter, the company sees a net loss of $0.16 to $0.29 per share on same-store sales in the mid to high negative single digit range.